Goldman Sachs Restarts Coverage on American Express as a “Buy” (AXP)

By Staff,

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Credit card issuer American Express Company ( AXP ) on Friday saw its coverage resumed with a "Buy" rating by analysts at Goldman Sachs.

The firm also set a $59 price target on AXP, which suggests a 16% upside to the stock's $51.82.

A Goldman analysts noted, "In our view, the market is under-appreciating the return capabilities at AXP, which would be driven by operating leverage and excess capital. Given its spend-centric business mix, we expect continued top-line growth to be aided by further spending by high-end consumers and growth in its international franchise."

American Express shares were mostly flat in premarket trading Friday.

The Bottom Line
Shares of American Express ( AXP ) have a 1.39% dividend yield, based on last night's closing stock price of $51.82. The stock has technical support in the $46-$50 price area. If the shares can continue the recent run, we see overhead resistance around the $54-$55 price levels.

American Express Company ( AXP ) is not recommended at this time, holding a DARS™ Rating of 3.3 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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