Credit card issuer American Express Company (
) 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
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 (
) 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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