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RBC Capital Remains Bullish on Bread Financial Holdings (BFH) Amid Stable Outlook

Bread Financial Holdings, Inc. (NYSE:BFH) is included in our list of the 12 deep value stocks to invest in.

On October 24, 2025, RBC Capital raised its price target on Bread Financial Holdings, Inc. (NYSE:BFH) from $64 to $70, maintaining a “Sector Perform” rating. The investment firm’s revised target reflected improving credit trends, another modest reserve release, and a stable outlook. The revision was also attributed to the consistency shown in the company’s quarterly results.

On the previous day, Bread Financial Holdings, Inc. (NYSE:BFH) reported its Q3 2025 results. The company surpassed analyst expectations with EPS of $4.02, compared to a forecast of $2.19. The increase in net income to $188 million was supported by a 5% YoY growth in credit sales, thanks to resilient consumer spending across categories like apparel and beauty. The company also noted strengthening credit quality during the quarter, with net loss rates improving sequentially.

Bread Financial Holdings, Inc. (NYSE:BFH) also declared a 10% dividend increase, alongside an expanded $200 million share repurchase authorization, thanks to its expense discipline, steady credit performance, and growing digital capabilities.

Bread Financial Holdings, Inc. (NYSE:BFH), a tech-enabled financial services company, offers personalized payment, lending, and savings solutions to consumers.

While we acknowledge the potential of BFH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BFH and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 7 Best Oil and Gas Penny Stocks to Buy According to Analysts and Billionaire Jacob Rothschild’s RIT Capital Partners: 9 Stocks with Huge Upside Potential.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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