Evercore ISI Lowers American Express (AXP) Price Target after Q4 Results
American Express Company (NYSE:AXP) is included among the 14 Best Warren Buffett Dividend Stocks to Buy.
On February 10, Evercore ISI analyst John Pancari lowered his price recommendation on American Express Company (NYSE:AXP) to $393 from $400. The analyst maintained an In Line rating on the shares. The adjustment came after the company released its fourth-quarter results, prompting the firm to update its earnings estimates.
Earlier, on January 30, American Express projected full-year profit that came in mostly above Wall Street expectations. The outlook reflected continued strength in spending from its younger and more affluent customers. Still, a slight miss in holiday-quarter earnings put some pressure on the stock. The results also showed a widening gap in spending behavior across income groups. Many U.S. consumers have been cutting back as higher borrowing costs and persistent inflation weigh on household budgets. In contrast, higher-income customers have continued spending on travel, dining, and luxury purchases.
“We’re not projecting any discontinuity. Spend that Gen Z and millennials have on their American Express cards is now bigger than Gen X,” AmEx CFO Christophe Le Caillec told Reuters. Le Caillec noted that this marked a first for the company’s US consumer segment and highlighted its long-term strategy to attract younger, premium customers.
American Express expects earnings per share between $17.30 and $17.90 in 2026. The midpoint of that range stands above analysts’ average estimate of $17.41 per share, based on LSEG data. For the fourth quarter, the company reported a profit of $3.53 per share for the period ending December 31. That came just below estimates of $3.54 per share. Citigroup analysts said the slight miss was mainly due to higher expenses, which increased 10% to $14.5 billion in the final three months of 2025.
American Express Company (NYSE:AXP) operates as a global payments company. Its business includes card issuing, merchant acquiring, and card network services. The company serves a wide range of customers, from individual consumers and small businesses to mid-sized firms and large corporations worldwide.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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