Goldman Sachs Raises Price Target on American Express (AXP)
Goldman Sachs reported on Tuesday that it has increased its price target on payment services company, American Express Company (AXP).
The firm has reiterated a “Neutral” rating on AXP, and has raised the company’s price target from $70 to $76. This price target suggests that the stock will remain at at its current price of $75.21.
Analyst Ryan Nash noted, “we recently hosted a meeting with American Express President Ed Gilligan. While the macro backdrop remains challenging from a growth perspective, AXP is managing for both the near and longer term by containing expenses and selectively investing in growth initiatives. We walked away feeling confident that spending trends are fairly stable (7% YoY in 1Q13) in most areas (premium, small business), as the wealth effect from higher markets and home price appreciation could be helping its premium customers and drags on overall performance (corporate travel, Europe) are fairly stable. Additionally, early indicators from fee-based initiatives (Bluebird, Loyalty Partner) are exceeding expectations and could have long runways, while further GNS partnerships (domestically and internationally) could be on the come.”
American Express shares were up 82 cents, or 1.10% during Tuesday afternoon trading. The stock is up 31% YTD.
The Bottom Line
Shares of American Express Company (AXP) have a 1.2% yield, based on Tuesday afternoon’s price of $75.26.
American Express Company (AXP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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