Credit card issuer American Express Company ( AXP ) on Monday caught a big downgrade from analysts at Morgan Stanley.
The firm said it cut its rating on AXP from "Overweight" to "Equal-weight" with a $51 price target. That target suggests a 13% upside to the stock's Friday closing price of $45.
Morgan Stanley said it made the move due to expected spending cuts by the company, particularly in Europe.
American Express shares rose 76 cents, or +1.7%, in premarket trading Monday.
The Bottom Line
Shares of American Express ( AXP ) have a 1.60% dividend yield, based on Friday's closing stock price of $45.00. The stock has technical support in the $42 price area. If the shares can firm up, we see overhead resistance around the $48-$50 price levels.
American Express Company ( AXP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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