Barclays downgrades American Express on balanced risk/reward into earnings

Barclays downgraded American Express to Equal Weight from Overweight with a price target of $221, up from $220. The analyst continues to view American Express as the best card issuer to own in the card space and is positive on the company’s longer-term growth prospects. However, the stock’s risk/reward is balanced at current levels, the analyst tells investors in a research note. The firm says upside from further multiple re-rating is limited while Street earnings estimates “look well calibrated” and material upward revisions seem unlikely. Barclays models a moderate deceleration in American Express’ revenue growth into Q and sees risk that if revenue comes in worse than expected, “it will reinvigorate questions about the guide,” particularly at the current valuation. The stock in premarket trading is down 12c to $223.99.