Assessing American Express: Insights From 11 Financial Analysts

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11 analysts have shared their evaluations of American Express AXP during the recent three months, expressing a mix of bullish and bearish perspectives.

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.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 3 7 0 0
Last 30D 0 0 1 0 0
1M Ago 1 1 2 0 0
2M Ago 0 2 4 0 0
3M Ago 0 0 0 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $324.82, a high estimate of $350.00, and a low estimate of $301.00. This current average has increased by 9.11% from the previous average price target of $297.70.

price target chart

Investigating Analyst Ratings: An Elaborate Study

A clear picture of American Express's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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
Betsy Graseck Morgan Stanley Raises Equal-Weight $310.00 $305.00
Richard Shane JP Morgan Raises Neutral $307.00 $301.00
Eric Wasserstrom UBS Raises Neutral $320.00 $283.00
Brian Foran Truist Securities Announces Buy $350.00 -
Donald Fandetti Wells Fargo Raises Overweight $340.00 $300.00
Betsy Graseck Morgan Stanley Raises Equal-Weight $305.00 $252.00
David Rochester Compass Point Raises Neutral $325.00 $315.00
Sanjay Sakhrani Keefe, Bruyette & Woods Maintains Outperform $350.00 $350.00
David Rochester Compass Point Raises Neutral $315.00 $260.00
Richard Shane JP Morgan Raises Neutral $301.00 $286.00
Sanjay Sakhrani Keefe, Bruyette & Woods Raises Outperform $350.00 $325.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to American Express. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

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.

Delving into American Express's Background

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: A Financial Overview

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, American Express showcased positive performance, achieving a revenue growth rate of 8.16% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher 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 14.87%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.35%, the company showcases effective utilization of equity capital.

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 industry norms, indicating a sound financial structure with a ratio of 1.85.

What Are Analyst Ratings?

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.

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

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