American Express stock price target maintained at $371 by KBW

Investing.com - Keefe, Bruyette & Woods (KBW) has reiterated its Outperform rating and $371.00 price target on American Express (NYSE:AXP), citing the company’s refreshed Platinum card offering.

KBW views the enhanced value proposition of the updated Platinum card as "much greater than the $200 increase in annual fee" and believes it maintains the product’s premium positioning in the market.

The financial services firm highlighted American Express’s ongoing collaborations with partners including Lululemon, Uber, and Walmart to provide additional value to cardholders.

KBW noted the earnings impact will take time to fully materialize since American Express amortizes annual fees over 12 months, with new cardholders paying the increased fee immediately while existing customers will see the change upon renewal.

The research firm expects the refreshed card to attract new customers while improving retention of existing cardholders, potentially driving "stronger growth over the short to intermediate term."

In other recent news, American Express reported its second-quarter 2025 earnings per share of $4.08, marking a 2% increase year-over-year and a 12% rise quarter-over-quarter, surpassing the consensus estimate of $3.89. Wells Fargo has raised its price target for American Express to $375, maintaining an Overweight rating, citing confidence in the U.S. Platinum card refresh. Meanwhile, Freedom Capital Markets downgraded American Express from Hold to Sell, adjusting its price target to $280. Additionally, American Express has been named the Official Payments Partner of Hard Rock Stadium, the Formula 1 Crypto.com Miami Grand Prix, and the Miami Dolphins in a multi-year agreement. In July, American Express reported that its U.S. Consumer Card Member loans held for investment were $93.7 billion, with a delinquency rate of 1.3% and a net write-off rate of 2.0%. In other developments, Cardlytics received a positive mention from Citron Research, which highlighted its integration with major financial institutions as a key strength. Citron Research expressed a bullish view on Cardlytics, pointing to American Express’s recent Platinum card refresh as supporting evidence.

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