Trump's Interest Rate Cap May Impact Credit Card Rewards
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Source: Barron's
Trump's Proposal: President Donald Trump has proposed capping credit card interest rates at 10%.
Impact on Rewards: This cap is expected to lead to a reduction in rewards for consumers, particularly those with lower credit scores.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXP is 373.63 USD with a low forecast of 280.00 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
7 Buy
13 Hold
1 Sell
Moderate Buy
Current: 356.990
Low
280.00
Averages
373.63
High
425.00
Current: 356.990
Low
280.00
Averages
373.63
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
American Express Q4 Earnings Preview: Key Insights and Analyst Ratings
- Revenue Growth Expectations: Analysts predict American Express will report Q4 revenue of $18.88 billion, a 9.9% increase from last year's $17.18 billion, indicating strong performance amid ongoing consumer recovery, which could further bolster market confidence.
- Earnings Per Share Increase: Expected EPS will rise from $3.04 last year to $3.54, marking the seventh consecutive quarter of beating analyst estimates, showcasing the company's sustained profitability and potentially attracting more investor interest.
- Analyst Rating Upgrades: Firms like JPMorgan, TD Cowen, and Barclays have raised their price targets for American Express, reflecting optimistic market expectations for its future performance, which may drive the stock price higher post-earnings report.
- Significant Market Influence: As a key component of the Dow Jones Industrial Average, American Express's earnings report will significantly impact several stocks and ETFs, particularly given its substantial position in Berkshire Hathaway's portfolio, potentially triggering broader market reactions.
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American Express Q4 Earnings Analysis
- Earnings Performance: American Express reported a Q4 non-GAAP EPS of $3.53, missing estimates by $0.02, indicating pressure on profitability that may affect investor confidence.
- Revenue Growth: The company achieved $18.98 billion in revenue for Q4, a 10.5% year-over-year increase, exceeding market expectations by $50 million, reflecting sustained customer spending that drives business expansion.
- Rising Expenses: Consolidated expenses reached $14.5 billion, up 10% year-over-year, primarily due to increased customer engagement costs, highlighting ongoing investments in enhancing customer experience, although this may compress profit margins.
- Dividend Adjustment: The company plans to raise its quarterly dividend on common shares by approximately 16%, from $0.82 to $0.95 per share, demonstrating confidence in future cash flows and aiming to attract more investors while enhancing shareholder returns.
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