American Express reported mixed Q2 results, beating EPS but missing revenue estimates, and narrowed its full-year revenue guidance slightly below consensus. This led two prominent analysts to lower their price targets, indicating a slightly more cautious outlook despite the stock's post-earnings gain.
American Express (AXP) reported Q2 earnings that beat analyst expectations on EPS but missed on revenue. More significantly, the company narrowed its full-year revenue outlook to a range slightly below the analyst consensus, suggesting a potential slowdown in growth compared to prior expectations. This mixed performance and slightly dampened outlook prompted Evercore ISI Group and Morgan Stanley analysts to reduce their price targets for AXP. While the stock saw a short-term gain, the analyst adjustments indicate a more cautious long-term sentiment, posing a potential headwind for future price appreciation if the company continues to underperform revenue expectations. Traders should monitor future revenue growth and analyst sentiment closely.