American Express to refresh Platinum cards, KBW maintains rating

American Express (AXP) announced its largest-ever investment in refreshing its Platinum cards, both consumer and business versions, with details expected in fall 2025, following reports of Chase updating its Sapphire Reserve card. Keefe, Bruyette & Woods maintained an Outperform rating with a $360 price target, anticipating the refresh, potentially including an annual fee increase, will drive card fee income and account growth. Additionally, American Express reported U.S. Consumer Card Member loans of $92.0 billion with a 1.3% delinquency rate and a 2.1% net write-off rate as of May 31, 2025, and issued €1 billion and $5 billion in new notes as part of its capital management strategy.

Analysis

American Express (AXP) is undertaking its largest-ever investment in refreshing its Platinum Card products, with details anticipated in fall 2025, a strategic move to bolster its premium offerings amidst a competitive landscape, notably following reports of Chase's plans to update its Sapphire Reserve card. This initiative is supported by AXP's solid 9% year-over-year revenue growth and a 'GOOD' financial health score from InvestingPro. Keefe, Bruyette & Woods reiterated an 'Outperform' rating and a $360.00 price target, viewing the refresh as 'incrementally positive' and forecasting that a potential annual fee increase could drive card fee income growth and higher cardholder engagement. While competitive pressures exist, historical data suggests AXP has been resilient to competitor card launches. Recent financial disclosures indicate U.S. Consumer Card Member loans at $92.0 billion with a 1.3% delinquency rate and 2.1% net write-off rate as of May 31, 2025, while U.S. Small Business loans were $32.0 billion with 1.5% delinquency and 2.4% net write-off rates. Furthermore, AXP has actively managed its capital structure through the issuance of €1 billion and $5 billion in new notes and reclassified approximately $1.6 billion in Card Member loans related to its Amazon small business cobrand portfolio to 'loans held for sale,' which will remove them from future investment loan reports.

Key Decisions for Investors

• Investors should consider the potential for enhanced revenue and market share from the Platinum card refresh, supported by AXP's strong financial health and positive analyst sentiment, while recognizing the competitive dynamics within the premium card segment.
• It is advisable to monitor the specifics of the card refresh upon their reveal in fall 2025, including any changes to annual fees and benefits, and their subsequent impact on cardholder acquisition, spend, and fee income.
• Investors should continue to track AXP's credit quality metrics, such as delinquency and net write-off rates in its consumer and small business portfolios, and assess the implications of the recent capital management activities, including new debt issuances and the loan reclassification.