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Street View: American Express' strong earnings lead to split views on prospects

ReutersApr 21, 2025 1:18 PM

Credit card giant American Express AXP.N beat Wall St estimates for Q1 profit on Thursday, as its affluent customers shrugged off fears of a slowdown to continue spending on travel and entertainment

Median PT of 31 brokerages covering the stock is $285 - data compiled by LSEG

SKEPTICISM AND OPTIMISM

RBC ("outperform," PT: $310) sees management's confidence in durability of their customer base, spending trends and revenue outlook as a positive indicator for performance

Deutsche Bank ("buy," PT: $371) says co's strong earnings growth and resilience are notable, but its current discount due to perceived economic sensitivity and macro uncertainties makes it challenging for stock to re-rate in near-term

BTIG ("sell," PT: $240) is skeptical about co's ability to maintain its 2025 guidance, despite strong 1Q25 results

Morningstar (fair value: $255) says co's affluent cardholder base and spending-focused business model provide a significant layer of protection against credit-related concerns

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