Skip to main content

Market Overview

KBW Reviews AmEx Q4 Earnings, Downgrades To Market Perform

  • Shares of American Express Company (NYSE: AXP) have declined 27.3 percent over the past year, reaching a low of $62.64 on Thursday.
  • Sanjay Sakhrani of Keefe, Bruyette & Woods has downgraded the rating on the company from Outperform to Market Perform, while lowering the price target from $95 to $67.
  • Although the current stock valuation seems attractive and downside appears to be limited, Sakhrani believes that the road ahead for the company could be “bumpy” in the foreseeable future.

Analyst Sanjay Sakhrani explained that it was difficult to be constructive on the stock given the extended timeline for American Express to return to its EPS growth targets of 12-15 percent. There is also a need for “evidence of traction and execution on the substantial investments being made.”

Signs of traction and execution are especially needed, given management’s comments regarding revenue growth not having accelerated according to plan in the latter half of 2015, despite the increased investment initiatives.

“Ultimately, in the current volatile macro environment we believe there is better relative value elsewhere in our coverage universe where growth is a more prevalent part of the story today,” Sakhrani stated.

Following the 4Q15 results, the EPS estimates for 2016 and 2017 have been reduced from $5.65 to $5.48 and from $6.31 to $5.60, respectively, to reflect the company’s updated expense and revenue expectations.

Latest Ratings for AXP

Jun 2021Wells FargoMaintainsOverweight
Apr 2021Deutsche BankMaintainsBuy
Apr 2021BarclaysMaintainsEqual-Weight

View More Analyst Ratings for AXP
View the Latest Analyst Ratings


Related Articles (AXP)

View Comments and Join the Discussion!

Posted-In: Bruyette & Woods Keefe Sanjay SakhraniAnalyst Color Downgrades Price Target Analyst Ratings

Latest Ratings

SVLake StreetInitiates Coverage On20.0
CLSDJMP SecuritiesMaintains9.0
WPCJP MorganUpgrades88.0
BRKRCleveland ResearchUpgrades
NTRRaymond JamesDowngrades82.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at