Bank of America Securities analyst Mihir Bhatia maintained a Buy rating on American Express yesterday and set a price target of $358.00.
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Mihir Bhatia has given his Buy rating due to a combination of factors related to American Express’s performance and market position. Despite a slight underperformance in loan growth and credit compared to typical September seasonality, American Express’s results are considered superior to most other card issuers. The company’s loan growth remains in the mid-to-high-single digit range, and its loss rates are broadly in line with expectations, which supports a positive outlook.
Bhatia also notes that the net write-off rates for both US Consumer and US Small Business segments have decreased, which is a positive indicator of financial health. Although there was a slight increase in delinquencies, the trends suggest stability moving forward. Additionally, the price objective remains at $358, which indicates potential for stock appreciation from the current price, reinforcing the Buy recommendation.
According to TipRanks, Bhatia is a 4-star analyst with an average return of 7.4% and a 61.76% success rate. Bhatia covers the Financial sector, focusing on stocks such as Synchrony Financial, American Express, and Rocket Companies.
In another report released today, KBW also maintained a Buy rating on the stock with a $394.00 price target.