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Morgan Stanley Turns Bullish On American Express: 'One Of The Fastest EPS Growth Stories In Our Coverage Universe'

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Morgan Stanley Turns Bullish On American Express: 'One Of The Fastest EPS Growth Stories In Our Coverage Universe'

Morgan Stanley cited strong revenue and earnings growth and strong consumer card use in a Thursday upgrade of American Express Company (NYSE: AXP). 

The Analyst

Betsy Graseck upgraded AmEx from Equal Weight to Overweight and raised the target price from $123 to $140.

The Thesis

The bottom line is that customers are spending and using credit.

“AXP is driving robust top-line growth from a combination of strong loan and transactional growth,” Graseck said in the Thursday upgrade note. (See the analyst's track record here.) 

Despite a slight first-quarter revenue miss April 18, Graseck said revenue is still growing robustly — and views that growth as sustainable.

Earnings per share look even better, and the analyst said AmEx now has “one of the fastest EPS growth stories in our coverage universe.”

AmEx reported first-quarter EPS of $2.01, beating Street expectations by a few pennies. Its revenue of $10.346 billion just missed analysts’ $10.46-billion estimate. The company guided to fiscal 2019 EPS of $7.85 to $8.35 and revenue growth of 8-10 percent.

Price Action

AmEx shares were trading up 1.47 percent to $115.73 at the time of publication Thursday. 

Related Links

American Express Analyst Finds Positives, Negatives In Q1 Print

Analysts React After American Express Rings Up Q4 EPS, Sales Miss

Latest Ratings for AXP

DateFirmActionFromTo
Jul 2019MaintainsNeutral
Jul 2019MaintainsSector Perform
Jul 2019MaintainsOutperform

View More Analyst Ratings for AXP
View the Latest Analyst Ratings

Posted-In: Betsy Graseck charge cards credit cards financial servicesAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

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FTVMorgan StanleyMaintains70.0
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