BFH - Balance Sheet

Recommend buying BFH ($69 price target, 54% upside) as one of the few remaining mispriced assets within financials. Credit is stabilizing, capital is significant and growing, the CFPB late fee rule1 (and the accompanying short thesis) is dead for now, and the 20%+ ROTCE profile at a sub-TBV valuation are a tantalizing combination. BFH is entering a new era. With the rehabilitation of credit and capital complete, we see the company pivoting back to growth, showing improving returns, and delivering upside to consensus estimates.