Street View: AmEx walks a fine line between growth and spending

Morningstar

27/07/2026 12:12

** 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
     
NAVIGATING THE BALANCE
** 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
     
     

 (Reporting by Kanishka Ajmera in Bengaluru)
 ((Kanishka.Ajmera@thomsonreuters.com))