BofA upgrades ‘flight to quality beneficiary’ American Express to Buy

As previously reported, BofA analyst Mihir Bhatia upgraded American Express (AXP) to Buy from Neutral with a price target of $274, down from $325. The firm thinks the current downtick offers long-term oriented investors “an opportunity to buy a high-quality company at a reasonable valuation.” While acknowledging the macro environment is uncertain and GDP growth is likely slowing, which is a headwind for revenue growth, the firm thinks Amex’s high-quality customer base should drive more durable earnings while keeping credit losses in-check, calling the stock a “flight to quality beneficiary.”