Market Overview

UPDATE: Credit Suisse Reiterates Underperform Rating, Raises PT on American Express Company

Share:
Related AXP
Deutsche Bank Slashes AmEx Target By Nearly 30%, Maintains Buy
Big Insider Buys At American Express, General Electric And Kinder Morgan
Why Apple Pay Is Not a Threat to PayPal (GuruFocus)

In a report published Friday, Credit Suisse Group reiterated its Underperform rating on American Express Company (NYSE: AXP), and slightly raised its price target from $58.00 to $59.00.

Credit Suisse noted, “AXP preannounced 4Q earnings of $637MM or $0.56/share including pretax charges totaling $895MM. Ex-charges, earnings were $1.09/share, largely in line with our estimate. AXP took three charges: (1) $400MM restructuring charge for elimination of 5,400 positions (8.5% of workforce); (2) $153MM in cardmember reimbursements, partially related to 3Q regulatory consent order; and (3) $342MM membership rewards liability adjustment (URR increased to 94% from 93%). The restructuring charge will mainly impact Global Travel as the company moves to online support. Amex also is limiting itself to annual operating cost increases of less than 3% over the next two years (excluding rewards, marketing and cardmember service expenses). Our forecast had been for about 3% growth in opex, and we are reducing it to 2%. However, the ultimate test will be whether Amex will get value from the investments that they have made over the past several years, and those that will be funded with these job reductions.”

American Express Company closed on Thursday at $60.79.

Latest Ratings for AXP

DateFirmActionFromTo
Feb 2016NomuraMaintainsNeutral
Feb 2016Deutsche BankMaintainsBuy
Jan 2016Morgan StanleyDowngradesOverweightEqual-weight

View More Analyst Ratings for AXP
View the Latest Analyst Ratings

Posted-In: Credit Suisse GroupAnalyst Color Price Target Analyst Ratings

 

Related Articles (AXP)

View Comments and Join the Discussion!

Get Benzinga's Newsletters