Our report American Express is updated and rated Weak Buy / Hold at $62.30.
America Express is forecasting little to no earnings growth for this year and next. The credit card business is facing pressure to lower the fees charged to Merchants. American Express may need to cut cost dramatically (which it probably can do). It’s still a powerful brand and has potential but for the near-term is facing difficulty. It is expecting to report a large unusual gain next month on the sale of its Costco-related receivables and that could provide a boost although that should already be priced into the stock.