BTIG analyst Vincent Caintic downgrades $American Express (AXP.US)$ to a sell rating, and sets the target price at $230.
According to TipRanks data, the analyst has a success rate of 45.6% and a total average return of -0.5% over the past year.
Furthermore, according to the comprehensive report, the opinions of $American Express (AXP.US)$'s main analysts recently are as follows:
The expectation is for positive delinquency trends to persist in the second half of 2024 for prime card issuers. For non-prime lenders, the forecast is less optimistic, with a more restrained credit improvement anticipated in fiscal 2025.
The firm perceives 'asymmetric risk' for American Express as it trades near the upper end of its valuation spectrum with confined potential for estimate increases. The prevailing consensus anticipates a 15% yearly growth through to 2026, a projection that borders on an optimal scenario considering a slowdown in sales expansion, thus offering limited room for upward revisions. The suggestion is for investors to consider taking profits within the consumer finance sector when opportunities present themselves.
Expectations are set for a particularly dynamic third quarter earnings season for specialty finance companies, with the Federal Reserve's rate cut and consumer credit stress likely to be pivotal factors. A notable focus is anticipated on the outlook for net interest income as rates decrease. It is suggested that companies with asset sensitive balance sheets may experience pressure in this environment.
Note:
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