American Express Company

American Express delivered a mixed result in the most recent quarter, with revenues below market anticipation, but it surpassed the analyst consensus regarding earnings. Its performance was a continuation of the trend of six consecutive quarters of growth since the growth plan was announced in 2020. Their fee-based premium products and solid customer base contribute to fast-growing subscription-like revenues. They continue to see growth in spending, particularly from millennial and Gen Z consumers, and strong demand for their premium products. Partnerships, such as the long-standing one with Hilton, play a significant role in their model, allowing them to attract new customers and deepen existing relationships. Its best-in-class credit metrics and robust risk management capabilities reflect its financial strength. The company’s focus on continuous strategic investments and thoughtful underwriting actions, coupled with the strong demand for its premium products, positions them well for future growth. Among key updates, American Express launched an exclusive offer for new platinum card members to boost business spending rewards. We give American Express Company a ‘Hold’ rating with a revised target price.