Piper Jaffray Assumes American Express (AXP) at Neutral

Piper Jaffray assumes coverage on American Express (NYSE: AXP) with a Neutral rating and a price target of $81.00 (from $76.00).

Analyst Jason Deleeuw commented, "We assume coverage of AXP with a Neutral rating and one-year price target of $81 (13.5x our ‘17E EPS of $6.00) offering ~12% potential upside. AXP’s shares are -21% YTD vs. the S&P 500/payments peer group at +3%/+27. This great brand, payments network, and organization has hit turbulence while navigating an evolving payments landscape. We believe the recent challenges facing AXP are not intractable, though recovery time is needed as visibility of stronger, more attractive growth could be more than one year away. Importantly, we believe visibility of more attractive revenue/EPS growth will materialize before the current positive credit cycle turns into a headwind, though we believe that dynamic needs to stay on investors’ radar screens. We see a Bear-Bull valuation range between $77-$85 based on a scenario analysis "

For an analyst ratings summary and ratings history on American Express click here. For more ratings news on American Express click here.

Shares of American Express closed at $71.63 yesterday.

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