Wells Fargo says that credit card stocks "appear to be discounting an elevated risk of recession" in the U.S. The firm says that a "mild recession (or worse) is already priced into the shares of Discover (DFS) and American Express (AXP)." However, the firm says that it sees a low chance of recession in the U.S. in the next six months, and it expects the U.S. economy to grow 4.3% in nominal terms in 2017. It keeps Outperform ratings on Discover, Citi (C), JPMorgan (JPM), Bank of America (BAC), and U.S. Bancorp (USB). It maintains Market Perform ratings on American Express (AXP) and Capital One (COF).

BMO Capital raised the firm's price target on American Express to $175 from $167 and keeps an Underperform rating on the shares. The firm cites the company's broad-based Q1 earnings beat, with higher than previously-modeled net interest income and slightly lower credit costs being partly offset by higher expected operating expenses. BMO adds however that it remains concerned that American Express's elevated loan restructuring rate could eventually bleed into higher credit provisions.

RBC Capital raised the firm's price target on American Express to $253 from $250 and keeps an Outperform rating on the shares. The company's Q1 results showed a "good quarter" with revenues that met expectations, controlled core expenses, and acceptable credit trends, the analyst tells investors in a research note. While spend volumes continued to moderate, American Express management remains confident on the near and longer term revenue trajectory, the firm added.

Morgan Stanley raised the firm's price target on American Express to $226 from $222 and keeps an Equal Weight rating on the shares following Q1 results that were better than expected, led by net interest income, credit, and expenses. The firm is taking forward EPS up 1%, noting that its 2024 estimate is now above the midpoint of management's EPS guidance at $13.02, though it maintains an Equal Weight rating, citing valuation.

Shares of Walmart-backed (WMT) Ibotta soared in their market debut, rising more than 30% and giving the digital marketing company a valuation of about $3. 55B... To see the rest of the story go to thefly.com. See Story Here