American Express Faces "Limited" Upside Amid Slower Billings Growth, Premium Valuation, BofA Says

MT Newswires Live08-21

American Express (AXP) offers "limited" incremental upside due to slower billings growth and a premium valuation, BofA Securities said in a note Wednesday.

Despite a favorable long-term view on American Express' execution and strategy, BofA said "recent commentary from retailers and travel companies suggests the spending backdrop is challenging, even for the high-end consumer."

With the stock trading at 17x expected 2025 earnings per share, BofA said it sees minimal room for gains, especially in a soft-landing backdrop.

"US consumer spending trends and outlooks are less than robust," BofA said.

The brokerage also expects American Express' revenue to hit the low end of its 9% to 11% growth guidance amid these headwinds.

BofA downgraded American Express stock to neutral from buy and reiterated a $263 price target.

American Express shares fell more than 3% in recent trading Wednesday.

Price: 245.25, Change: -7.83, Percent Change: -3.09

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