Citi released a research report highlighting recent information from American Express AXP.
“AXP has been focused on getting card members to use their card in virtual wallets such as iTunes, particularly as consumers tend not to switch the primary card in this type of wallet.” Citi writes. “Additionally, AXP is developing new ways to deliver customized merchant offers to card members via recent initiatives such as foursquare and inSite. Lastly, AXP remains well positioned to continue leveraging their rewards points as a ‘virtual currency' for online spending.A card member can pay for an Amazon purchase with their American Express reward points.”
“Mgt again emphasized the flexibility of their recent investment initiatives and reiterated that the efficiency ratio which reached 74% in 2010 on an adjusted basis should return to historic levels (note AXP's efficiency ratio ran at ~67% before the credit crisis). In their presentation, AXP directly tied the impressive new cards acquired and growth in market share to 25.4% of U.S. credit card spending with the higher recent levels of investment.”
Citi reiterated its Buy rating for AXP and has 12 month price target of $60.
AXP closed Thursday at $44.02
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.