American Express upgraded to Equal Weight from Underweight at Stephens

Stephens upgraded American Express to Equal Weight from Underweight with a price target of $193, up from $148. With management having already implicitly guided to a 2024 guidance miss on a December webcast, investors are now focused on 2025 estimates, when American Express can return to its historical revenue and earnings growth targets year-over-year, the analyst tells investors in a research note. Additionally, falling interest rates actually have a slight benefit to American Express on two points: charge-card receivables receive better funding costs without yield impacts and most of the company’s revenues are fee-based and therefore are not reduced by falling rates, says the firm.