What Analysts Are Saying About American Express Stock

In the preceding three months, 10 analysts have released ratings for American Express AXP, presenting a wide array of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing 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 $209.6, a high estimate of $243.00, and a low estimate of $159.00. This upward trend is evident, with the current average reflecting a 5.93% increase from the previous average price target of $197.86.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive American Express is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to American Express. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of American Express compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for American Express's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of American Express's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on American Express analyst ratings.

Unveiling the Story Behind American Express

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.

Financial Insights: American Express

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining American Express's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.27% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: American Express's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 12.06%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): American Express's ROE stands out, surpassing industry averages. With an impressive ROE of 6.88%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): American Express's ROA stands out, surpassing industry averages. With an impressive ROA of 0.74%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: American Express's debt-to-equity ratio is below the industry average at 1.75, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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