American Express price target lowered to $200 from $202 at BofA

BofA lowered the firm’s price target on American Express to $200 from $202 on Friday, while keeping a Buy rating on the shares. The firm notes American Express reported Q3 EPS of $3.30 well above BofAe/consensus at $2.94/$2.95 as lower engagement spending more than offset the slowdown in billings. Despite the beat, shares were underperforming likely due to network volumes and discount revenue coming in below expectations. Investors remain skeptical that Amex can deliver on its 10%+ revenue aspiration for 2024, the firm adds. Beyond billings, Q3 metrics were strong – loan yields increased 50bps quarter-over-quarter, credit metrics remain best in class by some distance, and OpEx, particularly variable engagement spending, was meaningfully better than expected, says BofA.