Assessing American Express: Insights From 15 Financial Analysts

Providing a diverse range of perspectives from bullish to bearish, 15 analysts have published ratings on American Express AXP in the last three months.

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 2 2 10 0 1
Last 30D 0 0 1 0 0
1M Ago 0 1 1 0 0
2M Ago 1 0 4 0 0
3M Ago 1 1 4 0 1

Insights from analysts' 12-month price targets are revealed, presenting an average target of $280.8, a high estimate of $350.00, and a low estimate of $230.00. Witnessing a positive shift, the current average has risen by 6.13% from the previous average price target of $264.57.

price target chart

Interpreting Analyst Ratings: A Closer Look

The standing of American Express among financial experts is revealed through an in-depth exploration 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
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
Betsy Graseck Morgan Stanley Raises Equal-Weight $252.00 $248.00
Moshe Orenbuch TD Cowen Raises Hold $268.00 $260.00
Terry Ma Barclays Raises Equal-Weight $257.00 $250.00
Betsy Graseck Morgan Stanley Raises Equal-Weight $248.00 $226.00
Gus Gala Monness, Crespi, Hardt Raises Buy $300.00 $265.00
Terry Ma Barclays Raises Equal-Weight $250.00 $223.00
Vincent Caintic BTIG Announces Sell $230.00 -
John Pancari Evercore ISI Group Raises In-Line $290.00 $275.00
Ryan Nash Goldman Sachs Raises Buy $300.00 $270.00
Richard Shane JP Morgan Raises Neutral $286.00 $268.00
Donald Fandetti Wells Fargo Raises Overweight $300.00 $285.00
Kenneth Bruce B of A Securities Raises Neutral $265.00 $263.00

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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey 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.

For valuable insights into American Express's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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.

A Deep Dive into American Express's Financials

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

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: American Express's net margin excels beyond industry benchmarks, reaching 14.87%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): American Express's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.35% 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 0.91% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 1.85, American Express adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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

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