William Blair analyst Christopher Kennedy has reiterated their bullish stance on AXP stock, giving a Buy rating on February 19.
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Christopher Kennedy’s rating is based on a combination of factors including the confidence expressed by American Express’s management in their full-year guidance despite potential revenue challenges in the upcoming quarter due to foreign exchange headwinds and the leap year effect. Kennedy notes that while the expected revenue growth for the March quarter has been adjusted downwards, the full-year revenue and earnings per share estimates remain robust, with substantial growth anticipated into 2025 and 2026.
Additionally, the premium card industry, where American Express holds a significant position, is expanding at a much faster rate than the overall card industry. This is supported by data indicating that affluent card payment volumes have significantly outpaced other cards in key markets such as the United States and the United Kingdom. The strong performance in consumer loan growth and stable delinquency rates in January further support a positive outlook for American Express, contributing to Kennedy’s Buy rating.
Based on the recent corporate insider activity of 76 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.