Bulletin
Investor Alert

New York Markets Open in:

Market Pulse Archives

Sept. 23, 2020, 10:33 a.m. EDT

American Express stock sinks after BofA analyst suggests it's time to sell

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    American Express Co. (AXP)
  • X
    Dow Jones Industrial Average (DJIA)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore

Shares of American Express Co. /zigman2/quotes/203805826/composite AXP +0.65% sank 2.1% in morning trading Wednesday, after BofA Securities analyst Mihir Bhatia turned bearish on the credit card and travel services company, citing concerns over billing volumes, particularly in airline and lodging. Bhatia lowered the rating on the stock to underperform, or the equivalent of sell, from neutral, and trimmed the price target to $95 from $106. "BofA Sector Analysts estimate it could be 2024 before spending volumes on airlines and lodging are at 2019 levels, and a full recovery is dependent on a vaccine being available and widely administered," Bhatia wrote in a note to clients. "We believe spending volume or billings is perhaps the most important metric for [American Express]," Bhatia added. The stock has dropped 22.5% year to date, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.40% has slipped 4.2%.

/zigman2/quotes/203805826/composite
US : U.S.: NYSE
$ 103.14
+0.67 +0.65%
Volume: 2.96M
Oct. 20, 2020 4:03p
P/E Ratio
21.37
Dividend Yield
1.67%
Market Cap
$82.50 billion
Rev. per Employee
$733,559
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
28,308.79
+113.37 +0.40%
Volume: 351.45M
Oct. 20, 2020 5:08p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.