UPDATE: JP Morgan Maintains Underweight on American Express on Capital Plans

In a report published by JP Morgan, analyst Richard Shane maintained an Underweight rating and $63 price target on American Express

JP Morgan reported that, “AXP plans repurchases of up to $4B in 2013, quarterly dividend of $0.23 (from $0.20). We had modeled a slightly higher $0.24 dividend and slightly lower $3.6B of repurchases. The numbers reflect a 97% total payout ratio, versus our 90% estimate. AXP also disclosed plans for up to $1B of repurchases in 1Q14. Both measures are subject to Board approval. We note that AXP reduced its repurchase request from $4.7B after the initial plan failed to meet the Fed's minimum 5% Tier 1 common ratio under the stress test. We model AXP to payout the maximum approved under the plan. We believe the payment is in-line to slightly above expectations, and expect a modest positive reaction.” Shares of American Express closed at $65.38 on Thursday.