Evercore ISI Lowers American Express (AXP) Price Target after Q4 Results

Core Insights - American Express Company (NYSE:AXP) is recognized as one of the 14 best dividend stocks recommended by Warren Buffett [1] - Evercore ISI analyst John Pancari has lowered the price target for American Express to $393 from $400 while maintaining an In Line rating following the company's fourth-quarter results [2] - The company projected full-year profits that exceeded Wall Street expectations, driven by strong spending from younger, affluent customers, despite a slight miss in holiday-quarter earnings [3] Financial Performance - For the fourth quarter, American Express reported earnings of $3.53 per share, slightly below the expected $3.54 per share, attributed to a 10% increase in expenses, totaling $14.5 billion [5] - The company anticipates earnings per share between $17.30 and $17.90 for 2026, with the midpoint exceeding analysts' average estimate of $17.41 per share [5] Customer Trends - Spending by Gen Z and millennials on American Express cards has surpassed that of Gen X, indicating a successful strategy to attract younger, premium customers [4] - There is a noticeable disparity in spending behavior across income groups, with higher-income customers continuing to spend on travel, dining, and luxury items, while many lower-income consumers are cutting back due to higher borrowing costs and inflation [3] Company Overview - American Express operates as a global payments company, providing card issuing, merchant acquiring, and card network services to a diverse customer base, including individual consumers, small businesses, mid-sized firms, and large corporations [6]