In a report released yesterday, Mihir Bhatia from Bank of America Securities reiterated a Hold rating on American Express (AXP – Research Report), with a price target of $325.00.
Mihir Bhatia has given his Hold rating due to a combination of factors related to American Express’s recent financial performance. The company reported credit performance that aligns with historical patterns, yet there is a noticeable slowdown in year-over-year loan growth. Although the credit metrics remain strong, the deceleration in loan growth from January to February suggests a cautious outlook.
Additionally, the loss rates have increased slightly, which is consistent with seasonal expectations. The net write-off rates for both US Consumer and Small Business segments have risen, contributing to a combined loss rate that aligns with historical trends. Despite these challenges, the company’s delinquency rates have remained stable, supporting the decision to maintain a neutral stance. The price objective has been slightly adjusted, reflecting these financial metrics while reiterating the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $280.00 price target.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AXP in relation to earlier this year.
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