Analysts’ Opinions Are Mixed on These Financial Stocks: American Express (AXP) and United Rentals (URI)


Companies in the Financial sector have received a lot of coverage today as analysts weigh in on American Express (AXP) and United Rentals (URI).

American Express (AXP)

In a report released yesterday, Dominick Gabriele from Oppenheimer maintained a Buy rating on American Express, with a price target of $120. The company’s shares closed on Thursday at $113.67, close to its 52-week high of $114.55.

Gabriele said:

“AXP reported 1Q19 “core” EPS of $2.01 vs. our/consensus $1.97/$1.99 estimates. Billed business growth YoY continued slowing on both a reported and FX-adjusted basis. In particular, US airline billings slowed from 9% to 5% QoQ. We think the slowdown in airline billings relates in part to an overall slowdown in YoY commercial billings growth, which slowed to 8% in 1Q19 vs. 10% 4Q18. We continue to see further pressure on commercial billings. Despite all of this, AXP still produced ~9% FX-adjusted revenue growth YoY, which we think shows a clear focus and strong execution of its strategy. Delta’s renewal didn’t have management reduce its annual guidance, and it’s a huge partnership win. That said, the renewal likely pressures consensus estimates for both 2019FY/2020FY. We still see levers AXP has as offsets.”

According to TipRanks.com, Gabriele is a 2-star analyst with an average return of 1.9% and a 66.7% success rate. Gabriele covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Santander Consumer USA.

Currently, the analyst consensus on American Express is a Moderate Buy with an average price target of $125.33.

See today’s analyst top recommended stocks >>

United Rentals (URI)

Oppenheimer analyst Scott Schneeberger maintained a Hold rating on United Rentals yesterday. The company’s shares closed on Thursday at $136.

Schneeberger commented:

“The year started well with 1Q19 pro forma (URI + BakerCorp + BlueLine) total revenue/rental revenue growing 6.1%/7.2% y/y. Overall business conditions appear healthy, with the company citing broadbased growth across geographies and verticals. Fleet Productivity, which reflects the combined impact of changes in rental rates, utilization, and mix, was +2.2% y/y on a pro forma basis in 1Q19. It was driven by rental rate (+2.4% y/y) and fleet mix more than offsetting a decline in time utilization (-150bps y/y), which was primarily attributed to acquisition integration/ adverse weather. 1Q19 adjusted EBITDA/EPS grew 18%/15% y/y. Our 2019 revenue/ adjusted EBITDA estimates remain unchanged at the midpoint of URI’s reiterated 2019 guidance as end-market activity appears solid entering the spring seasonal ramp.”

According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 7.0% and a 60.7% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, General Finance, and XPO Logistics.

Currently, the analyst consensus on United Rentals is a Moderate Buy with an average price target of $158.

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