Robert W. Baird analyst David George upgraded the rating on American Express (AXP – Research Report) to a Hold today, setting a price target of $265.00.
David George’s rating is based on a combination of factors that suggest a balanced risk/reward profile for American Express. Despite a persistent market sell-off, the high-quality franchise of AXP is expected to deliver on lower revenue growth expectations in various operating environments. The company has shown solid execution on revenue and EPS targets, achieving notable growth in 2024. However, the valuation is considered too expensive for new investments, with limited upside potential.
George notes that recent underperformance has improved the risk/reward trade-off, but the valuation still reflects modestly elevated expectations. The company’s credit quality remains strong, and while it is expected to hold up well in a tougher credit environment, there is still potential earnings pressure if consumer spending slows significantly. Overall, the Hold rating reflects a cautious stance, acknowledging both the strengths and the valuation concerns of American Express.
In another report released on March 12, Jefferies also maintained a Hold rating on the stock with a $260.00 price target.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AXP in relation to earlier this year.
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