American Express: Jefferies adjusts target price
(CercleFinance.com) - American Express has updated its short-term outlook to take into account the potential impact of COVID-19.
The group says that for Q1 it now expects sales growth of between 2% and 4%, excluding FX factors, as well as adjusted EPS of between 1.90 dollar and 2.10 dollars.
Following this announcement, Jefferies confirms its hold rating on the share, while adjusting its target price to 95 dollars.
"To date, credit performance remains consistent while T&E spending has declined substantially, somewhat offset by e-commerce and other category spending growth," Jefferies says.
Given ongoing uncertainty regarding the duration, extent and geographic spread of the Covid-19 pandemic, the credit card company however says that it is unable to predict its future financial results beyond the first quarter.
The American Express stock is down over 12% in early trading on Wall Street this Thursday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.