William Blair analyst Christopher Kennedy has reiterated their bullish stance on AXP stock, giving a Buy rating yesterday.
Christopher Kennedy has given his Buy rating due to a combination of factors that highlight American Express’s strong financial positioning and growth potential. The stock is currently trading at a discount compared to the S&P 500, despite American Express demonstrating superior revenue and earnings growth. This discrepancy is seen as unjustified, given the company’s historical return on equity, which has consistently outperformed the market.
Furthermore, American Express’s strategic focus on premium consumers, along with its robust underwriting standards and revenue model, positions it well to handle economic challenges. The company has shown resilience with stable billed business growth and a strong performance in travel and entertainment sectors. With a flexible cost structure and multiple growth levers, American Express is expected to achieve mid-teens EPS growth, making it an attractive investment opportunity.
Kennedy covers the Technology sector, focusing on stocks such as nCino, MeridianLink, and Fidelity National Info. According to TipRanks, Kennedy has an average return of -7.1% and a 29.17% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $275.00 price target.