Can American Express Turn Premium Card Growth Into Higher Profits?

Impact · against what's priced in

The report provides evidence for the bull case for American Express by showing that fee-paying growth is strong, though this is currently offset by high acquisition costs. The outlook for moderating expenses in Q4 suggests a potential path toward the margin expansion the market is currently discounting.

AXP+0.20

Challenges what's priced in

The price assumes

Sustaining recent 10-11% billed business and revenue growth instead of decelerating to the 1.6% the price requires