American Express (AXP) maintaining its 2024 guidance backs the belief that mid-teens earnings per share growth is achievable and sustainable amid a slower revenue environment, RBC said in a note.
Analysts, including Jon G. Arfstrom, said in a Friday note that the company’s management continues to be confident about its long-term growth trajectory and ability to sustain the current spending momentum, particularly domestically.
“Over the medium to long term, we believe the company has significant opportunities to build upon its leading market share in the small business and corporate card space with its targeted investments in technology and its digital platform. We also see opportunities for the company to increase penetration over time in international markets,” the analysts said.
The analysts added that they are adjusting their 2024 EPS estimate from $12.80 to $13.10 and 2025 EPS from $15 to $15.15.
American Express said in its Q1 earnings report that it continues to expect full-year 2024 EPS of $12.65 to $13.15 on revenue growth of 9% to 11%.
American Express is seen as less risky than its peers as it has better-quality portfolios, making it easier to handle any losses, the analysts said, adding that the stock is a good choice for long-term investors looking for above-average earnings growth and returns.
The firm raised the price target on the bank holding company to $253 from $250 while keeping its outperform rating.