Analyst Vincent Caintic of BTIG maintained a Sell rating on American Express (AXP – Research Report), reducing the price target to $240.00.
Vincent Caintic’s rating is based on a combination of factors that raise concerns about American Express’s future financial performance. The target price for AXP has been reduced from $272 to $240, reflecting a more cautious outlook on the company’s earnings potential for 2026 and 2027. This adjustment stems from anticipated slowdowns in spending and revenue growth starting in 2025, leading to a reduction in estimated earnings per share for the subsequent years.
Moreover, the skepticism is heightened by the company’s recent earnings report and call commentary, which did not alleviate concerns about the quality of the 2025 guidance. The lack of discussion on how American Express would navigate a potential recession adds to the uncertainty, especially considering its past performance during economic downturns. Additionally, the reliance on credit reserve releases and marketing expense reductions to meet earnings targets raises questions about the sustainability of the current business levels. The valuation concerns are further compounded by the perception that revenue growth is being driven by increased rewards, which may not be a sustainable strategy in the long term.
AXP’s price has also changed moderately for the past six months – from $285.780 to $251.310, which is a -12.06% drop .