Susquehanna Starts American Express with a “Positive” Rating (AXP)

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Credit card issuer American Express Company ( AXP ) on Wednesday saw its coverage initiated by analysts at Susquehanna with a "Positive" rating.

The firm also set a $53 price target on AXP, which implies an upside of 25% to the stock's Tuesday closing price of $42.78.

A Susquehanna analyst commented, "We believe Amex should do better than the Street predicts, and are initiating above consensus. "Superprime" FICO scores of its members, emergence of BRIC Millionaires carrying Amex, and benign treatment of Amex charge cards by Durbin open a window. Our $53 price target contemplates ~14.5x, a tempered historical discount to include economic and competitive risk."

American Express shares were mostly flat in premarket trading Wednesday.

The Bottom Line
Shares of AXP have a dividend yield of 1.68%, based on last night's closing stock price of $42.78. The stock has technical support in the $38 price area. If the shares can firm up, we see overhead resistance around the $46 price level. We would remain on the sidelines for now.

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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