An analyst at FBR Capital research believes that American Express’s (NYSE: AXP) stock price will be hindered by an anti-trust lawsuit brought on from the Justice Department. The analysts previously predicted that AXP’s stock would hit $48.00 during the next 12 months, but now predicts the stock will only hit $45.00
Analyst Scott Valentin reiterated his “market perform” rating on the stock saying that investors will likely remain wary of the shares until American Express’s lawsuit with the government is resolved.
Visa and MasterCard settled with the government on the charges, which said that the three credit card companies had anti-competitive rules when they prohibited merchants from offering customers discounts or rebates from using a particular type of card. MasterCard and Visa agreed to remove the prohibition from their rules, but American Express is fighting the suit.
American Express Company (American Express) is a bank holding company. Its principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses. American Express has four segments: U.S. Card Services, International Card Services, Global Commercial Services (GCS), and Global Network & Merchant Services (GNMS). Its products and services include charge and credit card products, expense management products and services, consumer and business travel services, stored value products, such as Travelers Cheques and other prepaid products, network services, merchant acquisition and processing, point-of-sale, servicing and settlement and marketing and information products and services for merchants, and fee services. They are sold to diverse customer groups, including consumers, small businesses, middle-market companies, and corporations. Its subsidiary is American Express Travel Related Services Company, Inc. (TRS).
Shares of AXP traded up 0.45% during trading on Friday.
