Street View: AmEx walks a fine line between growth and spending
AXP•Broker views on growth, spending and margins
Morgan Stanley ("equal weight," PT: $382) says management's decision to reinvest 1H earnings upside into customer acquisition and technology should support long-term revenue growth, but is likely to limit near-term margin expansion and operating leverage.
Morningstar (fair value: $335) says revenue growth is being tempered by rising expenses.
TD Cowen ("hold," PT: $338) says "the quarter did show that while AXP is able to generate low-double digit revenue growth, at present it is seeing negative operating leverage given high costs growing and maintaining a premium card business."
RBC Capital Markets ("outperform," PT: $415) says the company is a "quality core holding" with a solid outlook for billings, revenues, and EPS, along with clean credit.
AmEx raises 2026 revenue forecast, keeps profit outlook unchanged
American Express AXP.N raised its 2026 revenue forecast on Friday, as its affluent customers continued to spend on travel, entertainment and dining, but the company kept its full-year profit forecast unchanged.
Median PT of 32 brokerages covering the stock is $370; average rating "buy" — LSEG-compiled data.
