American Express Price Targets Cut Ahead of Earnings Report

American Express (AXP) is facing a wave of reduced price targets from major analysts ahead of its third-quarter earnings report scheduled for October 23. UBS cut its target to $345 from $384, maintaining a ‘Neutral’ rating, while Evercore ISI lowered its target to $320 from $370, expecting 'relatively solid' Q3 results across regional banks and specialty financial names. Barclays also trimmed its target to $342 from $364, citing valuation pullbacks amid inflation and AI-related concerns.

The adjustments come as American Express prepares to launch its next-generation Amex Corporate offering, which includes Corporate Cashback Cards, expense-management software, a mobile app, and AI capabilities. Despite these updates, AXP shares have declined nearly 20% year-to-date, trading near $303 in pre-market trading.

Analysts remain divided on AXP, with Koyfin data showing 14 of 29 analysts rating the stock 'Hold,' while 15 rate it 'Buy' or 'Strong Buy.' Barclays reported a strong consumer and favorable lending outlook, supported by intra-quarter data and management commentary. Analysts estimate AXP will report revenue of about $20.115 billion and adjusted earnings per share (EPS) of approximately $4.54 for Q3.

Retail sentiment on Stocktwits has remained 'Bullish' for AXP, with message volume labeled 'Normal' and participation ratio 'Extremely High.' The company's upcoming earnings report will be closely watched for further insights into its performance and future outlook.