American Express stock price target raised to $375 from $350 at Wells Fargo

Investing.com - Wells Fargo raised its price target on American Express (NYSE:AXP) to $375 from $350 while maintaining an Overweight rating on the stock. The new target represents potential upside from the current price of $330.65, though InvestingPro analysis suggests the stock is trading slightly above its Fair Value.

The investment bank cited American Express as its "Top Pick" and expressed confidence that the U.S. Platinum card refresh would help address investor concerns about competition in the premium card space.

Wells Fargo highlighted that American Express achieved solid first-half revenue growth of 9% on an FX-adjusted basis, reinforcing its view of AXP as a "high quality franchise within financials."

The firm expects American Express shares to "continue grinding higher" with a bull case scenario where the stock’s price-to-earnings ratio approaches that of the S&P 500.

According to Wells Fargo’s analysis, American Express currently trades at 18.8 times 2026 estimated earnings and 16.6 times 2027 estimated earnings, with the new price target based on 19 times projected 2027 EPS.

In other recent news, American Express reported its card loan delinquency and write-off rates for July, revealing a total of $93.7 billion in U.S. Consumer Card Member loans held for investment. The percentage of loans 30 days past due remained steady at 1.3%, with a net write-off rate of 2.0% for the month. Truist Securities raised its price target for American Express to $348 from $340, maintaining a Buy rating, citing slightly better-than-expected revenue results for the second quarter. Additionally, American Express expanded its global partnership with AEG, becoming the official payment partner across more than 40 properties worldwide. This multiyear agreement covers key areas including venues, festivals, and sports. In a strategic move, American Express also appointed Randal K. Quarles and Noel Wallace to its Board of Directors, increasing the board to 14 members. Furthermore, the company entered a multi-year agreement as the Official Payments Partner of Hard Rock Stadium, the Formula 1 Crypto.com Miami Grand Prix, and the Miami Dolphins. Eligible card members will have exclusive access to presale tickets for the 2026 Miami Grand Prix.

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