American Express Faces Price Target Cut Amid Strong Earnings Outlook
American Express Co (AXP) has seen its stock price decline by 3.00%, hitting a 20-day low amid broader market weakness, with the Nasdaq-100 down 0.67% and the S&P 500 down 0.29%.
The decline follows an analyst's price target adjustment, with Evercore ISI lowering the target from $400 to $393 while maintaining an In Line rating. Despite this, American Express projected strong earnings per share between $17.30 and $17.90 for 2026, exceeding analysts' average estimate of $17.41. The company is successfully attracting younger affluent customers, with spending by Gen Z and millennials surpassing that of Gen X for the first time, indicating a positive long-term trend.
This price target cut reflects updated earnings expectations but does not overshadow the company's strong appeal among high-income consumers, who continue to spend robustly despite broader economic challenges.
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