Decoding 14 Analyst Evaluations For American Express

During the last three months, 14 analysts shared their evaluations of American Express AXP, revealing diverse outlooks from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for American Express, revealing an average target of $179.36, a high estimate of $205.00, and a low estimate of $151.00. This current average has decreased by 0.84% from the previous average price target of $180.88.

Interpreting Analyst Ratings: A Closer Look

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.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to American Express. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of American Express compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of American Express's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of American Express's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on American Express analyst ratings.

Discovering American Express: A Closer Look

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.

Understanding the Numbers: American Express's Finances

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, American Express showcased positive performance, achieving a revenue growth rate of 13.57% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: American Express's net margin is impressive, surpassing industry averages. With a net margin of 15.76%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): American Express's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.95%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.98%, the company showcases effective utilization of assets.

Debt Management: American Express's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.76.

The Significance of Analyst Ratings Explained

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 enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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