American Express Cut to a “Hold” at Jefferies (AXP)

By Staff,

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Credit card issuer American Express Company ( AXP ) on Tuesday caught a big downgrade from analysts at Jefferies & Co.

The firm said it cut its rating on AXP from "Buy" to "Hold" with a $50 price target. That new target suggests a 15% upside to the stock's Monday closing price of $43.48.

A new analyst at Jefferies said he made the move due to higher expected credit losses in 2012.

American Express shares fell 68 cents, or -1.6%, in premarket trading Tuesday.

The Bottom Line
Shares of American Express ( AXP ) have a 1.66% dividend yield, based on last night's closing stock price of $43.48. The stock has technical support in the $38-$40 price area. If the shares can firm up, we see overhead resistance around the $46-$47 price levels.

American Express Company ( AXP ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: AXP

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