William Blair analyst Christopher Kennedy has reiterated their bullish stance on AXP stock, giving a Buy rating on June 30.
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Christopher Kennedy has given his Buy rating due to a combination of factors that highlight American Express’s strong financial performance and growth potential. The company’s shares have outperformed the market year-to-date and are trading at a discount compared to the S&P 500, which Kennedy believes is unjustified given American Express’s superior growth in revenue and earnings, as well as its industry-leading credit quality. Additionally, the company’s ability to return significant capital to shareholders further supports the positive outlook.
American Express is also benefiting from favorable trends in the premium card segment, with affluent card payment volumes growing significantly faster than the overall industry. The Gen-Z and millennial demographics are emerging as crucial growth drivers, showing strong credit performance and higher engagement with American Express products. This younger cohort is expected to provide long-term returns that surpass those of older generations. Furthermore, upcoming product enhancements, such as the Platinum card refresh, are anticipated to boost customer growth, reinforcing the Buy rating.