Analyst Vincent Caintic from BTIG reiterated a Sell rating on American Express and keeping the price target at $277.00.
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Vincent Caintic has given his Sell rating due to a combination of factors affecting American Express’s recent Platinum card refresh. The refresh, which was highly anticipated, did not meet expectations as it lacked significant enhancements. This is concerning given the importance of the Platinum card for Amex and the competitive landscape with rivals like Chase and Citi introducing more attractive offerings.
Additionally, the increase in the annual fee to $895 was lower than expected, narrowing the gap with competitors and suggesting competitive pressures. While the changes may improve margins from existing customers, they do not seem to encourage new card acquisitions or enhance the card’s premium appeal. The refresh appears to complicate the user experience without adding exclusive features, potentially impacting customer loyalty and market share.
In another report released on September 17, Freedom Capital Markets also downgraded the stock to a Sell with a $280.00 price target.
Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AXP in relation to earlier this year.