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On Monday, Keefe, Bruyette & Woods updated their outlook on American Express (NYSE:AXP) stock, raising the price target to $360 from the previous $350. The firm sustained its Outperform rating on the company's shares. The adjustment comes in response to American Express's robust fourth-quarter 2024 performance and a positive start to 2025.
Analysts at Keefe, Bruyette & Woods have increased their earnings per share (EPS) estimates for American Express for the years 2025 and 2026 to $15.38 and $17.67, respectively, up from the prior estimates of $15.15 and $17.31. This revision reflects the company's stronger-than-expected top-line growth.
The new price target of $360 is based on applying a price-to-earnings (P/E) multiple of approximately 20.5 times the firm's 2026 EPS estimate. American Express reported solid earnings for the fourth quarter of 2024, and during the earnings call, management indicated a conservative stance on revenue guidance for 2025. However, they also suggested there could be upside potential if the billed business growth trends seen in the fourth quarter continue through the current year.
According to Keefe, Bruyette & Woods, American Express management has expressed optimism about growth opportunities in various segments, including the U.S. consumer sector, small and medium-sized enterprises (SMEs), and international markets. The firm's analysts have reiterated their view of American Express as a core holding for investors, maintaining the Outperform rating on the stock.
In other recent news, American Express has experienced a range of analyst revisions and reported its fourth-quarter earnings for 2024. Analyst firm Compass Point cut the company's target to $309 from $325, citing concerns over revenue growth. American Express reported an EPS of $3.04 for the fourth quarter, slightly surpassing the consensus estimate of $3.03. Other firms such as BTIG, Evercore ISI, Bank of America Securities, and Wolfe Research also adjusted their price targets and ratings for the company. These are recent developments in the financial analysis of American Express.
The company's 9.3% revenue growth in the last twelve months reached $60.76 billion. However, Compass Point's growth projections for 2025 and 2026 are slightly below the consensus at 8.9% and 8.4% year-over-year, respectively. BTIG raised its price target for American Express to $272, maintaining a Sell rating, while Evercore ISI increased the company's stock target to $344. Bank of America Securities also lifted its price target for the company to $326, maintaining a neutral stance.
Analysts from Goldman Sachs reaffirmed a Buy rating on American Express shares with a steady price target of $350, despite pre-tax pre-provision net revenue falling short of expectations due to higher expenses. Wolfe Research maintained a Peerperform rating on American Express, noting that the company's fourth-quarter EPS matched estimates and exceeded their expectations. These revisions and ratings come from recent analyst notes and reflect the ongoing financial developments within American Express.
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