Credit card issuer American Express Company (AXP) on Thursday caught some further positive commentary from analysts at Guggenheim & Co.
The firm maintained its “Buy” rating on AXP and lifted its price target $63 to $67, suggesting a nearly 18% upside to the stock’s Wednesday closing price of $56.95.
A Guggenheim analyst commented, “AXP’s American Express Payment Gateway announcement is important as it reflects a continued push into the digital space with merchant services that build relationships to promote bill business growth while driving incremental fee income.”
Continuing, “Given our increased comfort with longer-term revenue growth, we are raising our price target by $4 to $67, which reflects 13x our FY13E EPS; as operating leverage emerges, greater multiple expansion could occur as the 10-year median FY2 forward P/E is 15x.”
American Express shares, which have surged 21% year-to-date, were unchanged in premarket trading Thursday.
The Bottom Line
Shares of American Express (AXP) have a 1.40% dividend yield, based on last night’s closing stock price of $56.95. The stock has technical support in the $52-$54 price area. If the shares can firm up, we see overhead resistance around the $58-$60 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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