Nomura Securities Raises Price Target on American Express (AXP)
Nomura Securities reported on Thursday that it has increased its price target on payment services company, American Express Company (AXP).
The firm has maintained a “Buy” rating on AXP, and has raised its price target from $73 to $89. This price target suggests a 14% upside from the stock’s current price of $76.60.
An analyst from the firm commented, “AXP shares lost their luster during the crisis but are now shining once again. Like the net worth of its affluent customers, the shares continue to hit new all-time highs. We expect AXP’s strong performance to continue as we look ahead. Our confidence is rooted in expense actions that are bearing fruit, fee-based revenue streams that are set to scale, and strong core businesstrends that appear likely to persist. We think consensus still underestimates AXP’s ability to control expenses. We’re raising our price target to $89, which is based on 16x our above-consensus 2014 EPS estimate of $5.59.”
Looking ahead, the firm has improved its FY2013 estimates from $4.79 to $4.92 per share. For FY2014, estimates have been raised from $5.33 to $5.59 per share.
American Express shares were up 69 cents, or 0.91% during Thursday morning trading. The stock is up 33% YTD.
The Bottom Line
Shares of American Express Company (AXP) have a 1.21% yield, based on Thursday morning’s price of $76.01.
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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