Demystifying American Express: Insights From 11 Analyst Reviews

Providing a diverse range of perspectives from bullish to bearish, 11 analysts have published ratings on American Express AXP in the last three months.

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, analyzed by analysts, offer insights with an average target of $198.27, a high estimate of $235.00, and a low estimate of $158.00. This upward trend is evident, with the current average reflecting a 4.9% increase from the previous average price target of $189.00.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of American Express by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of American Express compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of American Express's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into American Express's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on American Express analyst ratings.

About 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.

Revenue Growth: American Express displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 13.57%. This indicates a notable increase in the company's 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 net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.76% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): American Express's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.95% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): American Express's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.98% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 1.76, American Express adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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