Morgan Stanley has adjusted its price target for American Express (AXP, Financial), increasing it slightly to $250 from $246. The financial services company continues to maintain an Equal Weight rating on AXP, reflecting a balanced outlook.
Despite a slowdown in spending that exceeded expectations, American Express reported a modest earnings per share (EPS) boost due to a release of reserves. This boost signals a positive performance amidst challenging conditions.
Credit conditions for American Express appear robust, as delinquencies remain below pre-pandemic levels. However, the analyst from Morgan Stanley anticipates a need for higher reserves in the upcoming second quarter to maintain financial stability.
