Credit card issuer American Express Company (
) on Monday caught some additional bullish commentary from analysts
at Nomura Securities.
The firm reiterated its "Buy" rating on AXP as well as its $69
price target, which suggests an 18% upside to the stock's Friday
closing price of $58.56.
A Nomura analyst commented, "Conventional wisdom holds that
AXP's billings growth is largely driven by spending at high-end
retailers. While a relationship does exist, we remind everyone that
correlation does not imply causation. In reality, AXP's billings
are directly driven by other variables, including consumer
confidence and overall changes in net worth (a.k.a. wealth
Continuing, "Changes in net worth are largely explained by
changes in housing prices and stock market valuations. If the
consensus view that housing prices have bottomed is right, we
expect AXP billings to enjoy a meaningful source of downside
American Express shares were mostly flat in premarket trading
The Bottom Line
Shares of American Express (
) have a 1.31% dividend yield, based on Friday's closing stock
price of $58.56. The stock price has technical support in the
$54-$56 price area. The shares are trading near all-time highs.
American Express Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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