American Express Faces Growth Challenges, Synchrony and Capital One Emerge As Potential Alternatives: BofA Analyst

B of A Securities analyst Kenneth Bruce downgraded American Express Co (NYSE:AXP) from Buy to Neutral with a price target of $263. The stock price slid after the rerating.

Given the potential for subdued billings volume growth and current premium valuation, Bruce sees limited incremental upside for the stock.

Also Read: American Express Q2 Earnings: CEO Raises Annual Profit And Marketing Spend Outlook After Q2 Profit Beat

While the analyst maintained a favorable view of American Express’s long-term execution and strategy, recent commentary from retailers and travel companies suggests the spending backdrop is challenging, even for the high-end consumer.

Commentary from other companies, including Visa Inc (NYSE:V) suggested continued pressure on the …

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