After attending American Express' investor day meeting, Stephens analyst Vincent Caintic said he believes competition is forcing AmEx away from its core fee/discount-rate focus into areas that are lower margin, higher risk and less efficient operationally. While he thinks these are necessary moves for AmEx, he believes the multiple should continue to compress given the dynamic and he does not think American Express shares can return to their 18x forward P/E multiple of the past. Caintic maintains an Equal Weight rating on American Express following the investor event.

Wells Fargo raised the firm's price target on American Express to $265 from $250 and keeps an Overweight rating on the shares. The firm sees a good case for management to express greater confidence in or lean to the upper end of the EPS or revenue guide for 2024. With the macro haze fading, Wells believes investors will come away with a greater appreciation of the competitive position and moat.