What 8 Analyst Ratings Have To Say About American Express

Across the recent three months, 8 analysts have shared their insights on American Express AXP, expressing a variety of opinions spanning from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $271.12, a high estimate of $300.00, and a low estimate of $260.00. Witnessing a positive shift, the current average has risen by 2.53% from the previous average price target of $264.43.

Diving into Analyst Ratings: An In-Depth Exploration

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 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: Gaining insights, analysts provide 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: Delving into movements, analysts provide estimates for the future value of American Express's stock. This analysis reveals shifts in analysts' expectations over time.

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.

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 Milestones: American Express's Journey

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and 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 8.5% as of 30 June, 2024, showcasing a substantial increase in 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: American Express's net margin is impressive, surpassing industry averages. With a net margin of 18.23%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): American Express's ROE excels beyond industry benchmarks, reaching 10.21%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): American Express's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.1% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: American Express's debt-to-equity ratio is below the industry average. With a ratio of 1.8, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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