NEW YORK (TheStreet) -- Shares of American Express Co. (AXP) closed down -0.46% to $95.40 today as the U.S. government said the company hindered price competition in the U.S. credit card market and prevented merchants and consumers from reaping cost savings, during the first day of a trial in Brooklyn federal court, Reuters reports.
In an antitrust lawsuit, the Justice Department and 17 states have accused Amex of blocking credit card companies from lowering processing fees and allowing businesses to pass on savings to consumers.
U.S. District Judge Nicholas Garaufis of Brooklyn, who is overseeing the trial and will determine the outcome, asked few questions on Monday and did not offer any clues on how he views the case, Reuters noted.
TheStreet Ratings team rates AMERICAN EXPRESS CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN EXPRESS CO (AXP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."