(Reuters) – Activist investor Daniel Loeb’s Third Point LLC on Friday disclosed a new position in American Express Co (N:), saying the market under-appreciates the strategic pivot of the company.
The hedge fund said it sees the company’s shares trading above $135 over the next 18 months. The company’s stock was at $108.06 in afternoon trading.
Third Point, in its quarterly investor letter https://www.thirdpointoffshore.com/wp-content/uploads/2018/11/Third-Point-Q3-2018-Investor-Letter-TPOI.pdf, did not disclose the size of the stake in the company.
AmEx’s new chief executive officer, Stephen Squeri, is re-energizing the company by focusing on growth and opportunities in commercial and international units that will likely lead to more double-digit earnings growth, the hedge fund said.
Third Point said AmEx has a significant opportunity to sustain revenue growth, as it prioritizes investments that drive customer acquisition, card acceptance and higher average spend.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
