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A Closer Look at 16 Analyst Recommendations For American Express

Author: Benzinga Insights | June 04, 2024 03:01pm

In the last three months, 16 analysts have published ratings on American Express (NYSE:AXP), offering a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 6 5 2 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 3 4 4 2 0
3M Ago 0 1 1 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $240.0, a high estimate of $275.00, and a low estimate of $175.00. Marking an increase of 5.39%, the current average surpasses the previous average price target of $227.73.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

In examining recent analyst actions, we gain insights into how financial experts perceive American Express. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Donald Fandetti Wells Fargo Raises Overweight $275.00 $265.00
Jon Arfstrom RBC Capital Raises Outperform $263.00 $253.00
David George Baird Raises Underperform $205.00 $190.00
John Pancari Evercore ISI Group Raises In-Line $255.00 $243.00
Donald Fandetti Wells Fargo Raises Overweight $265.00 $250.00
Moshe Orenbuch TD Cowen Raises Hold $225.00 $221.00
Jon Arfstrom RBC Capital Raises Outperform $253.00 $250.00
Mark Devries Deutsche Bank Raises Buy $260.00 $240.00
James Fotheringham BMO Capital Raises Underperform $175.00 $167.00
Betsy Graseck Morgan Stanley Raises Equal-Weight $226.00 $222.00
Saul Martinez HSBC Raises Buy $239.00 $232.00
Donald Fandetti Wells Fargo Raises Overweight $250.00 $220.00
Terry Ma Barclays Raises Equal-Weight $221.00 $220.00
Gus Gala Monness, Crespi, Hardt Announces Buy $245.00 -
Richard Shane JP Morgan Raises Overweight $240.00 $214.00
John Pancari Evercore ISI Group Raises In-Line $243.00 $229.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to American Express. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of American Express compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of American Express's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of American Express's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on American Express analyst ratings.

Get to Know American Express Better

American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, it has operated in three segments: global consumer services, global commercial services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.

American Express's Financial Performance

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: American Express displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 10.64%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 15.22%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): American Express's ROE stands out, surpassing industry averages. With an impressive ROE of 8.47%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): American Express's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.91% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: American Express's debt-to-equity ratio is below the industry average at 1.76, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: AXP