American Express (AXP – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Moshe Orenbuch from TD Cowen maintained a Hold rating on the stock and has a $270.00 price target.
Moshe Orenbuch’s rating is based on American Express’s recent financial performance and market conditions. The company reported earnings per share that exceeded both the firm’s and market expectations, primarily due to lower-than-anticipated provisions and strong credit quality. However, this positive outcome was offset by lower revenue and increased variable engagement expenses, driven by higher redemption costs and growth in premium card usage.
Despite maintaining its earnings guidance, American Express acknowledged potential concerns about a spending slowdown amid macroeconomic volatility. The company’s resilience in consumer spending and expense flexibility provide some confidence, but the lack of long-term aspirational revenue and EPS growth guidance adds uncertainty. Consequently, the Hold rating reflects a balanced view of the company’s current strengths and potential challenges in the evolving market environment.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $249.00 price target.