3/17/2010-Citigroup reiterated its Buy rating on American Express (NYSE:AXP) and maintained its $48 price target following an investor meeting with the company's executives.
Analyst Donald Fandetti commented, "Internally, AXP is keenly focused on growth initiatives. Mgt believes they are well positioned to fend off competitors that are now targeting the affluent transactor accounts. They highlighted the importance of their long-tenure in the high-end & strong service while suggesting others may not achieve positive economics. AXP will continue to emphasize premium cards and plans on introducing different types of charge card products through 2010. Only 13% of USCS billed business (spend) is from proprietary credit cards (non co-brand credit cards). Growth opportunities include: 1) charge card, 2) co-brand premium credit cards, 3) international, 4) alternative pmts, and 5) fee services business."
Fandetti continued, "The bulk of the marketing investments are expected to coincide with the benefits of the recovery in credit. Of the 2009 expense reductions, marketing expenses will return, T&E will come back but not fully, and most of the staff reductions will stay in place except for some targeted hires."
Keywords: American express Citigroup top pick Credit rating Target
Ticker(s): AXP
