Analysts Lower American Express Price Targets Ahead of Q3 Earnings
Analysts have adjusted their price targets for American Express (AXP) ahead of the company's third-quarter earnings report scheduled for October 23. Barclays reduced its target to $342 from $364, maintaining an 'Equal Weight' rating, citing concerns over inflation and AI-related impacts on valuations. UBS also lowered its target to $345 from $384, keeping a 'Neutral' rating. Evercore ISI cut its target to $320 from $370 but expects 'relatively solid' Q3 results across regional banks and specialty financial names.
Despite these adjustments, analysts remain optimistic about the financial sector's performance. According to Koyfin data, 14 of 29 analysts rate AXP as 'Hold,' while 15 rate it 'Buy' or 'Strong Buy.' American Express recently launched the next generation of Amex Corporate, introducing Corporate Cashback Cards, expense-management software, a mobile app, and AI capabilities to streamline financial management.
In the second quarter, American Express reported earnings per share (EPS) of $4.53, surpassing estimates, while revenue of $19.64 billion fell slightly short of expectations. Analysts anticipate Q3 revenue of about $20.115 billion and adjusted EPS of approximately $4.54. As of Monday’s pre-market trading, AXP shares were near $303, reflecting a nearly 20% decline year-to-date.
Retail sentiment on Stocktwits remained 'Bullish' for AXP over the past 24 hours, with message volume classified as 'Normal' and participation ratio as 'Extremely High.' The upcoming earnings report will be closely watched to see if American Express can meet or exceed these forecasts.