Storied credit card giant American Express (NYSE: AXP) rode the express train to profit on Thursday. On news of several analyst price target increases, the company’s stock zoomed almost 2% higher on the day. That was more than good enough to top the S&P 500 (SNPINDEX: ^GSPC), which slumped by nearly 0.1%.
What helped was that not one, not two, but three analysts upped their fair value assessments of AmEx stock. The most substantial raiser was Jeff Adelson from prominent and influential investment bank Morgan Stanley. His new price target is $305 per share, a robust 21% higher than his previous tag of $252.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
This doesn’t quite make him an AmEx bull, however, as he maintained his equal weight (read: hold) recommendation on the shares.
Although the other two price target raises weren’t as substantial, taken together, they bolstered the buy case for AmEx. Compass Point added $10 to its level for a new fair value assessment of $325 per share, although like Morgan Stanley, the researcher only feels the stock is a neutral. A more bullish Monness, Crespi & Hardt, meanwhile, upped its AmEx price target to $330 per share from $300 and kept its buy recommendation intact.
The reasons for these increases weren’t immediately apparent, but AmEx continues to be very much on the radar of both investors and analysts. The company has done well on the back of a frothy economy, as well as the dissipation of consumer worries about the effects of inflation. Given its prominence in the card payment industry and consistent profitability for many years, AmEx stock should be considered for any investor’s portfolio.
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $334,266!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,976!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $479,727!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of December 16, 2024
American Express is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
