- While management guided for an H2 expense ramp as it attempts to drive revenue growth in the wake of the Costco expiration, Street forecasts are all over the place, says the Barclays team.
- The Costco portfolio sale will dictate the aggressiveness of the American Express (AXP -0.9%) expense cuts, they say, expecting management guidance for a return to positive EPS growth next year to hold regardless of the premium received. A lower premium, though, means more work in store for management, especially as revenues are set to slip 2-3% next year.
- The duo lowers its 2016 EPS forecast to $5.49 from $5.60, and cuts its price target to $77.