American Express (AXP) PT Lowered to $360 at Truist Securities

Truist Securities analyst Brian Foran lowered the price target on American Express (NYSE: AXP) to $360.00 (from $400.00) while maintaining a Buy rating.

The analyst commented: "The Street and market have priced in the cost to grow (via rewards and cardmember services remaining elevated, offset by tempered opex and marketing), and have now moved onto the newer key debates of i) RWA inflation from the new Fed capital proposal and ii) white collar jobs displacement impacts. As we highlighted in our note following the proposal release as well as below, we expect some RWA inflation for them as they are a de facto Cat II bank. While this would still land them in their stated 10-11% target range in 2027, investors will be on the lookout for what the operational risk add on would exactly entail for Amex, given the vague language around “operational risk-weighted assets attributed to the interest and fee income associated with credit lines”—and what that would mean for Cat II card names like AXP and COF vs. more diversified and larger banks with card books such as JPM. We move our 2026E EPS up by 1% to $18.00 as we nudge our 1Q26 VCE ratio down from 46% to 45%, for a smoother path to a ~44% VCE for the year. We also nudge down our NCO ratio to 2.1% based on recent monthly data. We update our price target from $400 to $360 based on our maintained 2027E EPS and ~18x multiple, and maintain our Buy rating."

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