BofA Securities Reiterates Underperform Rating on American Express (AXP) As Expense Structure Overshadows Provision Driven Beat
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BofA Securities analyst Kenneth Bruce reiterated an Underperform rating and $113.00 price target on American Express (NYSE: AXP) after the company reported 4Q20 EPS of $1.76, ahead of Consensus of $1.31 driven by lower provision expense (reserve release) and somewhat offset by higher OpEx.
The analyst stated "While credit results were solid, we sense the Street will be disappointed with the OpEx miss and AXP’s in-line ‘21/’22 guidance. We expect both to be in focus on the earnings call later this morning. While AXP is a ‘reopening beneficiary’ we continue to have a more cautious outlook on the pace of the recovery vs. consensus. Maintain Underperform".
Shares of American Express closed at $114.50 yesterday.
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