American Express, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Vincent Caintic from BTIG maintained a Sell rating on the stock and has a $240.00 price target.
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Vincent Caintic has given his Sell rating due to a combination of factors related to American Express’s partnership with Delta Airlines. The recent earnings report from Delta Airlines highlighted a 10% year-over-year increase in remuneration from American Express, which was in line with the growth in card spending. However, this growth in remuneration outpaced the premium and loyalty revenue growth, raising concerns about the sustainability of such trends.
Moreover, there are speculations about a potential refresh of American Express’s premium card offerings, including the Delta card. This has led to questions about the economic dynamics between Delta and American Express, especially in terms of pricing power and marketing expenses. The possibility of increased marketing and rewards expenses in the latter half of the year could impact American Express’s earnings growth, prompting a cautious outlook from Caintic.
According to TipRanks, Caintic is a 2-star analyst with an average return of 0.9% and a 49.26% success rate. Caintic covers the Financial sector, focusing on stocks such as American Express, Capital One Financial, and FirstCash.