William Blair analyst Christopher Kennedy has reiterated their bullish stance on AXP stock, giving a Buy rating yesterday.
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Christopher Kennedy has given his Buy rating due to a combination of factors, including American Express’s strong financial performance and strategic initiatives. The company’s September-quarter results were robust, with revenues increasing by 11% and adjusted earnings per share surpassing expectations. Additionally, the return on equity remained high at 36%, and the firm returned a significant amount of capital to shareholders.
Another critical factor in Kennedy’s rating is the successful launch of the refreshed Platinum Card, which has exceeded expectations in terms of demand and engagement. The card’s global volume contribution is substantial, and the refresh has led to increased spending and profitability per account. Despite increased costs associated with the card refresh, Kennedy believes American Express has multiple strategies to enhance account growth and customer engagement, making the current valuation discount to the market unjustified.
In another report released yesterday, KBW also maintained a Buy rating on the stock with a $394.00 price target.
Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AXP in relation to earlier this year.