BofA views eBay‘s (EBAY) announcement that it will stop accepting American Express (AXP) cards as of August 17 as an “unwelcome development” and “incremental negative” that resurfaces acceptance perception challenges for AmEx. AmEx has battled perceptions that it is not as widely accepted as Visa (V) and Mastercard (MA) for years, so disputes like this one that result in degrading the card holder experience are “a negative for the brand and acceptance perception, even when the financial impact is likely to be manageable,” the analyst tells investors. BofA maintains a Buy rating and $247 price target on American Express shares.
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