American Express (NYSE: AXP)‘s stock had its “neutral” rating reiterated by Zacks Investment Research in a research report issued to clients and investors on Monday. They currently have a $52.00 price target on the stock.
Zacks’ analyst wrote, “American Express’ fourth quarter earnings was a penny above the Zacks Consensus Estimate, primarily due to increased card member spending, fewer defaults, investments in business initiatives and disciplined expense management that also drove the book value and ROE. However, low net interest revenue, high tax rate and loss provisions were the downsides. Although improved credit trends, capital flexibility and stable ratings bode well for long-term growth, lower yields on the portfolio overshadow the increased card spending. We expect lower borrowing on cards along with rising payment of outstanding debt to lower interest and loan fee income. We also remain cautious about the scope of expense growth and impact of regulations and lawsuits. Nevertheless, a spend-centric business model, healthy capital and the targeted above average payout ratio warrant enhanced growth in a stable market over time.”
Separately, analysts at Morgan Stanley (NYSE: MS) raised their EPS on shares of American Express in a research note to investors on Monday. They now have an “equal weight” rating and a $53.00 price target on the stock. Analysts at RBC Capital (NYSE: RY) raised their price target on shares of American Express from $42.00 to $45.00 in a research note to investors on Friday, January 20th. They now have an “underperform” rating on the stock.
American Express Company (American Express) is a global service 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. American Express Company and its principal operating subsidiary, American Express Travel Related Services Company, Inc. (TRS), are bank holding companies. It is engaged in businesses comprising four reportable operating segments: U.S. Card Services, International Card Services, Global Commercial Services, and Global Network & Merchant Services. Its range of products and services includes charge and credit card products, expense management products and services, consumer and business travel services, stored value products, network services, merchant acquisition and processing, point-of-sale, servicing and settlement, and marketing and information products and services for merchants, and fee services. In November 2010, it acquired Accertify Inc.
American Express traded down 1.46% on Monday, hitting $49.12. American Express has a 1-year low of $41.30 and a 1-year high of $53.80. The stock has a 50-day moving average of $48.49 and a 200-day moving average of $48.16. The company has a market cap of $57.176 billion and a price-to-earnings ratio of 12.10.