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American Express: Strong Financial Performance and Growth Prospects Justify Buy Rating

American Express: Strong Financial Performance and Growth Prospects Justify Buy Rating

William Blair analyst Christopher Kennedy has reiterated their bullish stance on AXP stock, giving a Buy rating on July 16.

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Christopher Kennedy’s rating is based on several compelling factors. American Express has demonstrated stable and solid financial results, with management affirming its 2025 guidance. The company’s shares are trading at a valuation discount compared to the S&P 500, despite exhibiting above-market growth in both top- and bottom-line metrics, a strong return on equity, and leading credit quality.
Additionally, American Express’s performance in the June quarter showed a notable increase in revenues and adjusted earnings per share, surpassing both internal and market estimates. The company also benefits from a strong engagement with the Gen-Z and millennial cohorts, which are expected to provide a substantial return on investment over the long term. These factors, combined with management’s confidence in achieving future growth targets, underpin Kennedy’s Buy rating on the stock.

In another report released on July 16, KBW also maintained a Buy rating on the stock with a $371.00 price target.

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