Nomura Securities Maintains a 'Buy' on American Express (AXP); Raising Estimates on Healthy Report

Nomura Securities maintains a 'Buy' on American Express (NYSE: AXP) price target of $69.00.

Analyst, Bill Carcache, said, "Amex reported 2Q12 GAAP EPS from continuing operations of $1.15 versus our estimate of $1.08/share and consensus of $1.10/share. Excluding the impact of reserve releases, we estimate that core EPS came in at $1.07 versus our estimate of $1.02. During the quarter, worldwide billed business grew at a healthy +9% on constant currency basis, consisting of +10% growth internationally and +9% growth in the US. FX headwinds lowered reported worldwide growth to 7% and international growth to 3%. Amex’s operating expense ratio fell to 70.6% in 2Q12, from 71.3% in 1Q12 and 75% in 2011. Amex repurchased ~$1.75 billion of shares during the quarter (versus our estimate of $1 billion). We are raising our 2012 EPS estimates to $4.42 (from $4.38) to reflect today’s modest beat."

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 $58.29 yesterday.

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