HSBC Downgrades American Express (AXP) to Hold

HSBC analyst Saul Martinez downgraded American Express (NYSE: AXP) from Buy to Hold.

The analyst said: "We continue believe that AXP has an attractive economic model, manageable credit risk, an aspirational brand, proven product innovation, and strong mindshare with younger demographics. However, these positives are priced in, in our view, after the stock’s 47% appreciation year-to-date (YTD) and 85% rise in the past 12 months (S&P 500 up 21% YTD and 33% over past 12 months). We still think AXP can deliver, on average, mid-teen annual EPS growth. However, revenue growth has slowed; reaching the aspirational goal of 10% annual revenue growth may be challenging without accelerating economic growth, in our view."

For an analyst ratings summary and ratings history on American Express click here. For more ratings news on American Express click here.

Shares of American Express closed at $275.97 yesterday.

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