American Express Co. (AXP) Stock Rating Reaffirmed by Credit Suisse Group AG
American Express Co. (NYSE:AXP)‘s stock had its “sell” rating reissued by stock analysts at Credit Suisse Group AG in a note issued to investors on Friday. They currently have a $62.00 target price on the payment services company’s stock. Credit Suisse Group AG’s price target would indicate a potential downside of 3.22% from the company’s current price.
The analysts wrote, “We note that the 12.3% y/y growth rate is a deceleration from last month’s 13.8% growth rate by 151 bps, and the only other m/m deceleration in balance growth YTD was in March (by 25 bps to 11.6% y/y growth). This deceleration could be attributable at least in part to success by Citi, post its launch of the Costco card, in attracting spend from former Amex-Costco cardholders. Amex shows strong credit quality with stable adjusted delinquencies of 1.0% and stable adj loss rates of 1.4%. U.S. Small Business ended the month with $8.8Bn loans, growing 15.9% y/y, a 35 bps acceleration from last month’s rate. Adjusted net losses were 1.4% (up 20 bps m/m). Dollar net losses were $11.7MM in the month, up 8% from July. 30+ day delinquencies were stable at 1.0%. Bottom Line: USCS and U.S. Small Business are both growing rapidly and credit also appears stable. Earlier we wrote that about half of the incremental growth seen in Amex’s Consumer card loans was a result of excluding slower-growing Costco card balances, while winning over former Costco cardholders with attractive sign-up cash bonuses resulted in acceleration. Now it appears that competitive factors are eroding the acceleration seen in the first half of 2016 as spending and balances shift to other attractive cards, such as the Citi Costco card.””
Several other equities research analysts have also recently commented on the company. Vetr raised American Express from a “buy” rating to a “strong-buy” rating and set a $67.47 price target for the company in a research note on Monday, June 27th. Goldman Sachs Group Inc. reissued a “neutral” rating and issued a $67.00 price target (up previously from $62.00) on shares of American Express in a research note on Tuesday, June 7th. Wells Fargo & Co. reissued a “hold” rating and issued a $65.00 price target on shares of American Express in a research note on Sunday, July 10th. Bank of America Corp. reissued a “sell” rating on shares of American Express in a research note on Friday, June 10th. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating on shares of American Express in a research report on Sunday, July 24th. Seven research analysts have rated the stock with a sell rating, twenty have issued a hold rating and eight have given a buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $69.13.
Shares of American Express (NYSE:AXP) opened at 64.06 on Friday. The company has a market cap of $59.18 billion, a price-to-earnings ratio of 11.33 and a beta of 1.24. American Express has a 1-year low of $50.27 and a 1-year high of $77.85. The firm’s 50-day moving average is $65.05 and its 200 day moving average is $63.26.
American Express (NYSE:AXP) last announced its quarterly earnings results on Wednesday, July 20th. The payment services company reported $2.10 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.95 by $0.15. The business earned $8.20 billion during the quarter, compared to analysts’ expectations of $8.33 billion. American Express had a return on equity of 28.00% and a net margin of 16.73%. The firm’s quarterly revenue was down .6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.42 EPS. Equities analysts expect that American Express will post $5.52 EPS for the current fiscal year.
Institutional investors have recently modified their holdings of the company. Mycio Wealth Partners LLC boosted its position in shares of American Express by 4.1% in the second quarter. Mycio Wealth Partners LLC now owns 1,638 shares of the payment services company’s stock worth $100,000 after buying an additional 65 shares during the period. Blume Capital Management Inc. boosted its position in shares of American Express by 15.5% in the second quarter. Blume Capital Management Inc. now owns 1,733 shares of the payment services company’s stock worth $105,000 after buying an additional 233 shares during the period. Meeder Asset Management Inc. bought a new position in shares of American Express during the first quarter worth about $133,000. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC boosted its position in shares of American Express by 0.5% in the second quarter. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC now owns 2,607 shares of the payment services company’s stock worth $158,000 after buying an additional 12 shares during the period. Finally, Kistler Tiffany Companies LLC boosted its position in shares of American Express by 13.6% in the second quarter. Kistler Tiffany Companies LLC now owns 2,625 shares of the payment services company’s stock worth $159,000 after buying an additional 315 shares during the period. Hedge funds and other institutional investors own 82.18% of the company’s stock.
American Express Company Profile
American Express Company is a services company. The Company’s principal products and services are charge and credit payment card products, and travel-related services offered to consumers and businesses around the world. The Company’s segments include U.S. Consumer Services (USCS), International Consumer and Network Services (ICNS), Global Commercial Services (GCS) and Global Merchant Services (GMS).
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