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Research Alert: CFRA Lowers View On Shares Of American Express Company To Buy From Strong Buy

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our 12-month target price by $40 to $410, applying a forward P/E of 20.3x our 2027 earnings estimate, a wider risk premium than the peer average of 7.4x given more consistent earnings performance. We lower our 2026 EPS estimate by $0.17 to $17.78 and reduce 2027's by $0.23 to $20.20. We have become more cautious primarily due to macroeconomic factors. The prolonged Middle East conflict has caused U.S. real wage growth to turn negative for the first time in three years. Despite this, AXP remains the best-in-class credit card issuer, and we expect competitors to face more of a strain on credit quality. Importantly, we are confident that credit card interest rate caps, a concern earlier this year, will not be implemented. Additionally, the Platinum Card refresh should continue to drive strong fee growth, with the annual fee increased to $895 from $695. Significant growth opportunities exist in international markets where market share is still minimal.

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