Market Overview

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

Share:
Related AXP
Why These 2 Research Firms Think The Deal With Costco Will Benefit Citigroup
Macquarie Sees 'Significant' Downside At American Express
Twitter Derives Momentum from Higher Advertising Revenues - Analyst Blog (Zacks)

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
Mar 2015MacquarieDowngradesNeutralUnderperform
Feb 2015Deutsche BankUpgradesHoldBuy
Feb 2015JefferiesMaintainsHold

View More Analyst Ratings for AXP
View the Latest Analyst Ratings

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

 

Related Articles (AXP)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→