Bank of America Securities analyst Mihir Bhatia maintained a Buy rating on American Express yesterday and set a price target of $358.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mihir Bhatia has given his Buy rating due to a combination of factors that highlight American Express’s strategic initiatives and market positioning. The recent refresh of the Amex Platinum card, which includes a significant increase in annual fees offset by substantial new and enhanced statement credits, is a key driver. The introduction of these new benefits, such as credits for Lululemon, Oura, and Resy, is expected to enhance the card’s appeal and competitiveness in the premium card market.
Furthermore, despite the increased competition from other premium cards like Chase Sapphire Reserve and Citi Strata Elite, American Express’s strong brand and established partnerships are likely to help it maintain its market position. Historically, card refreshes have led to improved retention rates and increased net card fee revenue, which is anticipated to rise significantly with the current fee adjustments. These factors collectively support the Buy rating, as they suggest a positive outlook for American Express’s financial performance and market share retention.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $350.00 price target.
AXP’s price has also changed moderately for the past six months – from $262.720 to $341.670, which is a 30.05% increase.