
American Express (AXP) Stock Forecast & Price Target
American Express (AXP) Analyst Ratings
Bulls say
American Express reported a revenue increase of 8.7% year-over-year to $17.2 billion, which reflects strong consumer demand, particularly in the travel and entertainment sectors where billings rose by 6.8% year-over-year. Discount revenues, critical to the company's overall performance, grew by 7.0% year-over-year to $9.2 billion, demonstrating robust merchant relationships and transaction volume during a seasonally strong period. Additionally, net interest income experienced a substantial year-over-year increase of 12.0%, reaching $4.0 billion, underscoring the company's effective management of card member loans and overall financial health.
Bears say
American Express's CET1 ratio has decreased by 20 basis points to 10.5%, indicating a potential weakening in capital strength, despite remaining within the management's targeted range. The company's outlook is negatively impacted by the possibility of a sustained recession, which could lead to declines in transaction volumes and revenue, alongside higher net write-downs and provisioning as economic conditions worsen. Furthermore, the competitive landscape presents challenges that may hinder the firm's ability to attract and retain customers, risking market share loss and diminishing global acceptance rates.
This aggregate rating is based on analysts' research of American Express and is not a guaranteed prediction by Public.com or investment advice.
American Express (AXP) Analyst Forecast & Price Prediction
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