Nomura Securities Maintains a 'Neutral' on American Express (AXP); Update Post Meetings with Management

Nomura Securities maintains a 'Neutral' on American Express (NYSE: AXP) price target of $52.00.

Nomura analyst says, "The old billed business growth rule of thumb was GDP times four. This relationship has broken down on decoupling of the high end consumer. Amex is in an enviable position with ~12% Basel 3 Tier 1 common and ~30% annual capital generation. The company is focused on a 50% payout ratio and keeping at least 10-11% Tier 1 common. The other 50% is to support growth including deals to add capabilities to Serve, scale in emerging markets, and adjacent capabilities similar to the Loyalty Partner deal. It is a rare financial with a capital and growth story, and the P/E is low relative to history. That said, the P/E relative to the S&P is in line with history while revenue growth is less attractive adjusted for rewards expense."

For more ratings news on American Express click here and for the rating history of American Express click here.

Shares of American Express closed at $49.53 yesterday.

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