American Express: Revenue Momentum Could Drive Higher Reinvestment, Says Analyst

Shares of American Express Co (NYSE: AXP ) recovered in early trading on Monday, after tanking on Friday following the company’s second-quarter results. The company reported solid results, with stronger billings and revenue trends, which could drive reinvestment, according to RBC Capital Markets. The American Express Analyst: Analyst Jon Arfstrom reiterated an Outperform rating and price target of $415. The American Express Thesis: "Management is encouraged with the core franchise momentum, customer acquisition trends, and engagement, which is driving revenues that management is allocating to reinvestment in the franchise," Arfstrom wrote in the note.

Check out other analyst stock ratings. He highlighted the following results releases by American Express: Total revenues grew 10% year-on-year on constant currency basis. 99 billion. 65 billion.

16 billion. 86 billion. 45 per share. 08 billion, the analyst stated.

S. S. consumer billings reached highs and are supporting stronger revenue guidance," he further wrote. Outlook: Management revised its revenue growth guidance to 10%, from its prior projection of 9%-10%, Arfstrom said.

90 per share. Management maintaining the earnings range balances the revenue strength against accelerated investment to support their longer-term growth aspirations, the analyst stated. "We continue to see the company as a quality core holding with a solid outlook for billings, revenues, and EPS, along with clean credit," he further wrote. 99 at the time of publication on Monday.

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