Analyst Mihir Bhatia from Bank of America Securities maintained a Buy rating on American Express and keeping the price target at $370.00.
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Mihir Bhatia has given his Buy rating due to a combination of factors including American Express’s steady loan growth and manageable loss rates. Despite a slight deceleration in loan growth in October, the company still achieved a year-over-year increase of 6.7%, which is considered robust compared to other card issuers. The growth in consumer and small business loans, although slightly down from September, remains strong, indicating a healthy demand for credit.
Additionally, while the loss rate increased to 2.3% in October, this rise is within expected seasonal variations and remains better than the industry average. Delinquency rates have remained stable, aligning with historical trends, which suggests that the company is effectively managing credit risk. These factors, combined with a price objective that suggests potential upside from the current stock price, underpin Bhatia’s Buy rating for American Express.
In another report released on November 13, Wells Fargo also maintained a Buy rating on the stock with a $400.00 price target.