Barclays Maintains an 'Overweight' on American Express (AXP); Credit Trends Better than Expected; Spend Growth Also Looks Strong

Barclays maintains an 'Overweight' on American Express (NYSE: AXP) price target of $60.00.

Barclays analyst says, "AXP reported managed and trust credit performance that showed solid NCO and delinquency performance that outpaced seasonal trends and was better than our expectations. U.S. billed business growth also appears to have accelerated from prior months based on trends that we extrapolate from the trust data...Net charge-offs: Managed NCOs were flat m/m at 2.3% and trust NCOs fell 33 bps to 2.25%, better than our estimates of 2.4% and 2.47% respectively...Delinquencies: Managed delinquencies were flat at 1.5% and trust delinquencies were up 1 bps to 1.65%, better than our expectations for a 3 bp increase and typical seasonal trends of +5 bps...Billed business: Our measure of y/y spend growth was +15.7%, which compares very favorably to 8.4% in September and 10.1% in August."

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 $49.95 yesterday.

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