American Express cut to Underweight at Stephens on growth and capital concerns

As previously reported, Stephens analyst Vincent Caintic downgraded American Express to Underweight from Equal Weight with a price target of $134, down from $146. American Express has been the investor safe haven of choice among credit cards, but given that Amex experienced the fastest loan growth among cards through the pandemic, has large commercial exposures and increased millennial concentrations, he thinks Amex is "more sensitive to a downturn than peers," Caintic tells investors. The combination of having the lowest credit reserves and second lowest capital ratio makes him worried about Amex’s cushion heading into a recession, added the analyst, who notes that his 2023 EPS forecast is now 4% below consensus.