Click to Enlarge “Buy”: 39%
Analysts have left American Express (AXP) on the roadside as only 39% of those with an opinion have it rated a “buy.” To give some perspective, the average of the S&P 500 companies is over 53% right now.
AXP has been adapting its approach to the market to include a larger group of consumers, rolling out new cards to Walmart (WMT) shoppers and other consumers that don’t fit the usual AMEX profile. The widening of its consumer reach should help earnings, which have been beating analyst expectations.
We believe the 36% year-to-date returns should get the analysts adapting their outlooks and raising their recommendations. Target a move to $100 before year-end.