Barclays Reiterates an 'Overweight' on American Express (AXP); Still Room to Outperform in 2012
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Price: $331.15 --0%
Rating Summary:
23 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
23 Buy, 23 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Barclays reiterates an 'Overweight' on American Express (NYSE: AXP) price target of $60.00.
Barclays analyst says, "Following AXP's solid outperformance year-to-date (up 13% vs. a flat S&P 500), many investors we speak to are left with the impression that the stock is relatively expensive and could be hard-pressed to outperform in 2012 as the tailwind from reserve releases and the Visa (NYSE: V) / MasterCard (NYSE: MA) settlement payments fade. We, however, believe the stock remains cheap on both an absolute and relative basis, and should benefit from a number of positive catalysts that result in above-consensus earnings in 2012. Based on our outlook for solid top-line growth, combined with a 25% ROE, we believe AXP is undervalued at just 11x our 2012 EPS estimate and still has significant upside (20%+ to our 12-month target)."
Barclays lowers FY11 EPS estimate from $4.19 to $4.13 and FY12 from $4.45 to $4.40.
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 $48.56 yesterday.
Barclays analyst says, "Following AXP's solid outperformance year-to-date (up 13% vs. a flat S&P 500), many investors we speak to are left with the impression that the stock is relatively expensive and could be hard-pressed to outperform in 2012 as the tailwind from reserve releases and the Visa (NYSE: V) / MasterCard (NYSE: MA) settlement payments fade. We, however, believe the stock remains cheap on both an absolute and relative basis, and should benefit from a number of positive catalysts that result in above-consensus earnings in 2012. Based on our outlook for solid top-line growth, combined with a 25% ROE, we believe AXP is undervalued at just 11x our 2012 EPS estimate and still has significant upside (20%+ to our 12-month target)."
Barclays lowers FY11 EPS estimate from $4.19 to $4.13 and FY12 from $4.45 to $4.40.
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 $48.56 yesterday.
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