How Analysts View American Express Stock


Jun. 26 2018, Updated 10:31 a.m. ET

Ratings for American Express stock

Analysts could improve their ratings for American Express (AXP) moving forward because of the expected rise in discount revenue. In June, eight of the 32 analysts covering the stock have given it a “buy” rating. Two analysts have given it a “strong sell,” five have given it a “strong buy,” and 17 are recommending a “hold.”

In May, American Express had nine “buy” ratings of the 33 analysts covering the stock. Five analysts rated it a “strong buy,” and two gave it a “strong sell.” Seventeen of them suggested a “hold.”

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Can consumer finance companies see more favorable ratings?

Moving forward, consumer finance companies (IYF) such as Mastercard (MA), Visa (V), Capital One Financial (COF), and Discover Financial Services (DFS) could see more favorable ratings, mainly due to their strong outlooks. However, these companies face several challenges, including regulatory risks, that could impact their businesses. Trade wars are expected to negatively impact American Express’s Global Commercial Services segment.

Vasant Prabhu, Visa’s CFO, has an optimistic outlook for contactless payments and believes consumers support these types of payments. The company is working to increase its penetration in contactless payments in the United States.

Martina Hund-Mejean, Mastercard’s CFO, believes that the regulatory environment needs to be supportive and that with government support, payment companies can witness significant growth. For example, India offers significant opportunities in terms of digital payments, and the government is supportive, which could help payment companies.


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