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NEW YORK - American Express (NYSE: AXP), a prominent player in the Consumer Finance industry with a market capitalization of $201.6 billion, announced Monday plans for significant updates to its U.S. Consumer and Business Platinum Cards later this year, representing the company’s largest investment ever in a card refresh. According to InvestingPro analysis, the company maintains a "GOOD" financial health score, positioning it well for this strategic investment.
The company will enhance travel, dining, and lifestyle benefits while also updating the physical cards’ appearance. Details of the specific changes will be revealed this fall, according to the press release statement. The initiative comes as American Express demonstrates strong business momentum, with revenue growing 9.05% over the last twelve months to $62.05 billion.
American Express currently offers access to over 1,550 airport lounges across more than 500 airports globally. The company plans to open three new Centurion Lounges in Newark, Salt Lake City, and Tokyo within the next year, bringing the total to 32 lounges worldwide.
The card issuer continues expanding its dining offerings through Resy, which provides reservations at over 20,000 restaurants in more than 30 countries. The recent acquisition of Tock will add 7,000 restaurants, wineries and venues to the platform.
For hotel benefits, American Express maintains 2,600 properties in its Fine Hotels + Resorts and The Hotel Collection programs, with hundreds of new locations being added in popular destinations.
The Business Platinum Card will also receive updates focused on helping companies grow, though specific details were not disclosed. Current Business Platinum benefits include a flexible spending limit, travel perks, rewards on business expenses, and access to cashflow management tools.
American Express noted that Millennial and Gen Z cardholders accounted for 35% of total U.S. Consumer spending last quarter, highlighting the card’s appeal across generations. The company’s strong market position is further reinforced by its 55-year track record of maintaining dividend payments, currently yielding 1.14%. For deeper insights into American Express’s valuation and growth potential, including 8 additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis and expert research reports.
In other recent news, American Express has disclosed its U.S. Consumer and Small Business Card Member lending portfolios’ performance, revealing a total of $90.7 billion in U.S. Consumer Card Member loans with a 1.4% delinquency rate and a net write-off rate of 2.0%. The U.S. Small Business Card Member loans amounted to $31.6 billion, with a delinquency rate of 1.6% and a net write-off rate of 2.4%. Additionally, American Express issued $5 billion in new notes, including several Fixed-to-Floating Rate Notes with varying maturities, as part of its ongoing capital management strategy. The company also announced the issuance of €1 billion in Fixed-to-Floating Rate Notes due in 2032, further supporting its financial flexibility. Analyst firm Redburn-Atlantic upgraded American Express’s stock rating from Sell to Neutral, though it reduced the price target to $255, citing concerns about the company’s revenue growth potential. Meanwhile, Citi maintained a Neutral rating with a price target of $300, noting a 10-cent earnings shortfall against consensus due to decreased discount fees and higher variable customer engagement costs. Citi projects slower billing growth and increased provisions but expects favorable net interest income to balance these factors. These developments highlight American Express’s strategic financial moves and the varying analyst perspectives on its stock.
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