A Glimpse Into The Expert Outlook On American Express Through 14 Analysts

Throughout the last three months, 14 analysts have evaluated American Express AXP, offering a diverse set of opinions from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $326.79, a high estimate of $370.00, and a low estimate of $265.00. Observing a 6.18% increase, the current average has risen from the previous average price target of $307.77.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of American Express by financial experts. The following summary presents 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: 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 predict movements in price targets, offering estimates for American Express's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of American Express's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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 Economic Impact: An Analysis

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, American Express showcased positive performance, achieving a revenue growth rate of 8.73% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: American Express's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 12.45% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): American Express's ROE stands out, surpassing industry averages. With an impressive ROE of 7.13%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.79%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: American Express's debt-to-equity ratio is below the industry average. With a ratio of 1.69, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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