Credit Suisse Group AG restated their sell rating on shares of American Express Co. (NYSE:AXP) in a research report report published on Friday morning. They currently have a $62.00 price target on the payment services company’s stock.
“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.”,” Credit Suisse Group AG’s analyst commented.
A number of other equities analysts also recently commented on the company. Keefe, Bruyette & Woods restated a market perform rating and set a $74.00 target price on shares of American Express in a report on Monday, September 12th. Atlantic Securities started coverage on American Express in a report on Friday, September 9th. They issued an underweight rating and a $62.00 price objective for the company. Piper Jaffray Cos. reiterated a hold rating and issued a $71.00 price objective on shares of American Express in a report on Wednesday, September 7th. Citigroup Inc. reiterated a buy rating on shares of American Express in a report on Wednesday, August 10th. Finally, JPMorgan Chase & Co. reiterated a neutral rating on shares of American Express in a report on Sunday, July 24th. Seven investment analysts have rated the stock with a sell rating, twenty have assigned a hold rating and eight have given a buy rating to the stock. American Express presently has a consensus rating of Hold and a consensus price target of $69.13.
Shares of American Express (NYSE:AXP) opened at 63.72 on Friday. American Express has a 1-year low of $50.27 and a 1-year high of $77.85. The company has a market capitalization of $58.86 billion, a PE ratio of 11.27 and a beta of 1.24. The stock’s 50 day moving average price is $65.04 and its 200-day moving average price is $63.30.
American Express (NYSE:AXP) last announced its earnings results on Wednesday, July 20th. The payment services company reported $2.10 EPS for the quarter, beating analysts’ consensus estimates of $1.95 by $0.15. The company earned $8.20 billion during the quarter, compared to the consensus estimate of $8.33 billion. American Express had a return on equity of 28.00% and a net margin of 16.73%. The firm’s revenue for the quarter was down .6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.42 earnings per share. On average, equities analysts predict that American Express will post $5.52 EPS for the current year.
Several hedge funds have recently modified their holdings of AXP. Williams Jones & Associates LLC increased its stake in shares of American Express by 934.9% in the second quarter. Williams Jones & Associates LLC now owns 144,086 shares of the payment services company’s stock worth $8,755,000 after buying an additional 130,163 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund bought a new stake in shares of American Express during the second quarter worth approximately $1,983,000. Kentucky Retirement Systems bought a new stake in shares of American Express during the second quarter worth approximately $4,177,000. Mason Street Advisors LLC bought a new stake in shares of American Express during the second quarter worth approximately $6,616,000. Finally, Northwestern Mutual Wealth Management Co. increased its stake in shares of American Express by 0.7% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 48,951 shares of the payment services company’s stock worth $2,974,000 after buying an additional 328 shares during the last quarter. 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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