Sell Rating on American Express Amid Delta Airlines’ Negative Outlook and Shifting Lending Dynamics

In a report released yesterday, Vincent Caintic from BTIG maintained a Sell rating on American Express (AXP – Research Report), with a price target of $272.00.

Vincent Caintic has given his Sell rating due to a combination of factors affecting American Express. One of the primary reasons is the negative outlook from Delta Airlines, a significant partner of American Express, which has lowered its earnings and revenue growth guidance. This reduction is attributed to weaker consumer and corporate confidence, which is expected to impact American Express’s growth similarly.
Furthermore, there is skepticism about whether American Express’s previous guidance had already accounted for these industry challenges. While the market often views prime and superprime lending as safe investments, Caintic argues that this perception is flawed. Instead, he suggests that the current environment may favor subprime lending, where lenders have already adjusted to tighter conditions and could see increased volume as prime lenders become more cautious.

AXP’s price has also changed slightly for the past six months – from $245.420 to $261.320, which is a 6.48% increase.