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Investing.com - Freedom Capital Markets upgraded American Express (NYSE:AXP) from Sell to Hold and raised its price target to $325.00 from $280.00 following the company’s third-quarter 2025 results. The stock, currently trading near its 52-week high at $357.63, has delivered a robust 30% return over the past six months, according to InvestingPro data.
American Express reported earnings per share of $4.14 for Q3 2025, representing a 19% year-over-year increase and exceeding forecasts by 4%. Revenue reached $18.43 billion, beating expectations by 2%. The company maintains a "GREAT" financial health score of 3.2 on InvestingPro, with strong profitability metrics and consistent revenue growth of 10.2% over the last twelve months.
The financial services company’s quarterly performance showed stable growth across key metrics, with stronger revenue, lower provisions, and share repurchases more than offsetting higher operating and tax expenses. The company has maintained dividend payments for 55 consecutive years, with a recent dividend growth of 17.1%.
Freedom Capital Markets based its new price target on a forward price-to-earnings ratio of 16x and forward earnings per share of $20.30 for the period from Q4 2026 to Q3 2027.
The upgrade follows American Express’s outperformance in the third quarter, with the financial firm maintaining its new Hold rating on the stock.
In other recent news, American Express reported strong third-quarter earnings, with earnings per share reaching $4.14, surpassing analysts’ expectations of $3.99. The company’s revenue also exceeded forecasts, coming in at $18.43 billion compared to the anticipated $18.05 billion. In light of these results, American Express has raised its full-year guidance, now projecting revenue growth between 9-10% and EPS ranging from $15.20 to $15.50. Additionally, American Express announced the issuance of $2 billion in fixed-to-floating rate notes due in 2036. These notes will initially bear interest at a fixed annual rate of 4.804%. The issuance was made under a senior indenture with The Bank of New York Mellon acting as trustee. These developments reflect significant recent activity for American Express, as the company continues to execute its financial strategies.
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