AXP citi


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Citi’s Donald Fandetti mentioned that the sentiment on American Express Company (NYSE: AXP) “is notably less negative than it was earlier in the year, as investors seem to view the valuation as skewed to the upside yet still lacking positive catalysts.”

Fandetti reiterated a Buy rating on the company, with a price target of $70.

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Cautious Tone

The analyst stated that during the recent investor meeting hosted by Citi, Chairman and CEO Ken Chanault and CFO Jeff Campbell “struck a cautious tone on global spend though seemed confident in their ability to compete in the heated rewards environment and view credit trends as remaining very stable.”

Management also reaffirmed that a large part of the recent new account growth would start to contribute more meaningfully to the revenues in 2H.

The $12 billion Costco Wholesale Corporation (NASDAQ: COST) portfolio sale is expected to close by the end of June.

“Much of AXP’s Q1 US account growth was current Costco cardholders receiving a new Amex card, which should have a more visible benefit to spend/revs going forward,” Fandetti pointed out.

Driving Loan Growth

American Express is focused on driving card loan growth, having reported 12 percent year on year growth in the 8-K filing on May 17.

Although the card industry has been experiencing accelerating loan growth, Fandetti stated that American Express’ rate was “impressive given their prime/affluent target market.”

Regarding credit, “the company does not believe investors should view the recent weakness at non-bank tech platforms as an early sign of US consumer deterioration,” Fandetti added.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorLong IdeasReiterationAnalyst RatingsTrading IdeasCitiDonald Fandetti