In a report released on April 17, Keith Horowitz from Citi maintained a Hold rating on American Express (AXP – Research Report), with a price target of $300.00.
Keith Horowitz has given his Hold rating due to a combination of factors related to American Express’s recent financial performance and market conditions. The company reported a slight miss in core pre-provision net revenue (PPNR) compared to consensus expectations, primarily due to lower discount fees and higher variable compensation expenses. This underperformance, coupled with concerns about consumer spending in an uncertain macroeconomic environment, has weighed on the stock.
Despite these challenges, management remains optimistic, noting consistent spending patterns in the second quarter and strong customer acquisition growth. However, given the increased macroeconomic uncertainty, Horowitz has revised down the fee outlook due to slower billings growth and raised provisions due to higher net write-offs, although these are partially offset by strong net interest income trends. While the earnings per share (EPS) guidance appears achievable under various scenarios, the limited upside potential leads to a preference for other investment opportunities.
In another report released on April 17, TD Cowen also maintained a Hold rating on the stock with a $270.00 price target.
AXP’s price has also changed moderately for the past six months – from $285.780 to $251.310, which is a -12.06% drop .