Third Point bets on American Express CEO driving growth

Bloomberg

Dan Loeb’s Third Point has taken a new position in American Express Co., saying Chief Executive Officer Stephen Squeri has positioned the credit card company for exceptional earnings growth.
Amex could trade higher than $135 per share in the next 18 months as it benefits from initiatives to capture more consumer, business and international customers, the New York hedge fund said in an investor letter. Its shares were little changed at $108.21 per share as of 3:32 pm in New York trading.
“Squeri is re‐energising Amex by focussing on topline growth and under‐appreciated structural opportunities,” Loeb said. “Efforts we think will lead to more sustainable double‐digit” earnings-per-share growth.
Third Point didn’t disclose the size of its stake. “We have ongoing conversations with Third Point as we do with other investors,” a spokeswoman for Amex said in a statement. “We appreciate their support and welcome investments in our company’s stock.”
Amex is on the right track now after falling behind in recent years from setbacks including the loss of co-branding relationships with JetBlue Airways Corp. and Costco Wholesale Corp., Third Point said.
“We think this challenging period galvanised the franchise, forcing necessary investments and a strategic pivot that is just beginning to pay off,” Third Point said.