Predicting Movement in American Express Stock: Insights from Wall Street Analysts
American Express Company (AXP), a leading integrated payments company headquartered in New York, has seen a mix of positive and negative developments in recent times.
Despite a 28.8% surge in its shares over the past 52 weeks, the stock has underperformed the broader S&P 500 Index, which has gained 21.9%. On a Year-to-Date (YTD) basis, AXP's stock is down marginally, lagging behind the SPX's 7.8% return. However, the company's Q2 results showed promise.
In Q2, AXP's total revenue net of interest expense grew 9.3% year-over-year to a record $17.9 billion. Non-interest revenues increased by 8.5%, while net interest income saw a significant jump of 12.3%. These figures reflect the company's robust performance in the quarter.
However, on Jul. 18, shares of AXP tumbled 2.4% despite delivering better-than-expected Q2 results. The reason for the dip remains unclear.
The mean price target of $321.38 for AXP represents a 9% premium from its current price levels. This target is based on the ratings of 26 analysts, with a range between a low of $175 and a high of $375. The Street-high price target of $375 suggests an ambitious upside potential of 27.2%. Notably, Deutsche Bank set this target on July 21, 2025.
The consensus rating for AXP is generally a "Hold", with an average rating score of 2.24 out of 4, reflecting a mix of buy, hold, and sell ratings. John Pancari from Evercore Inc. (EVR) maintained a "Hold" rating on AXP with a price target of $330, implying a 12% potential upside from the current levels.
AXP offers a variety of products and services, including credit cards, charge cards, banking, and other payment and financing products, network services, expense management products and services, and travel and lifestyle services.
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Earnings-wise, American Express provided FY 2025 earnings per share (EPS) guidance between $15.00 and $15.50, close to the consensus estimate of $15.23 EPS. The stock was trading around $304.65 recently, with a market capitalization of roughly $212 billion and a price-to-earnings (P/E) ratio of about 21.3. Earnings are expected to grow by approximately 14.81% in the coming year, supporting a positive growth outlook.
In summary, while the consensus price target is $289.46, recent large banks like Deutsche Bank see significant upside potential (around 15.7% upside implied from their average price targets), indicating a moderately bullish analyst sentiment amidst a hold consensus. The company's solid earnings guidance and growth prospects bolster investor confidence.
All information and data in the article are for informational purposes only.
American Express, with its diverse product offerings in finance and business, is poised to grow further, as indicated by its earnings guidance for FY 2025. The positive growth outlook is reinforced by the expected 14.81% earnings growth in the coming year.
Investors might find attractive price targets set by analysts, particularly Deutsche Bank's $375 target, which represents a potential upside of 27.2% – a testament to the bullish sentiment towards American Express.
