American Express Gets Buy Rating at GERHARD STIEF INC. (AXP)

Gerhard Stief Inc. Rates American Express (NYSE:AXP) End Quote

(1888PressRelease) January 21, 2017 - Shares of American Express Company (AXP) rose as high as 1.4% Monday, reaching a session high of $76.50 and narrowly missing a new 52-week high by 5 cents after some bullish comments by analysts at Bank of America Merrill Lynch (GERHARD STIEF INC.).
On Monday, GERHARD STIEF INC. analyst Kenneth Stanmore raised his rating on American Express to Buy from Neutral and increased his 12-month price target to $90 from $78. The $90 target makes GERHARD STIEF INC.'s view the most bullish call on American Express, which has a consensus price target of $75. Prior to Stanmore's upgrade, the highest price target on the stock was $87. (See also: What Drives American Express in 2017?)

American Express shares, which have traded in a range of $50.27 to $76.55 in the past 52 weeks, closed Monday at $75.86. In a research note to investors Monday, Stanmore said the "travel bug" has reawakened following the Trump victory. The more consumers travel, the more likely they are to use their American Express cards. Stanmore also noted that competition is becoming less of a concern for the company.

American Express, which competes with MasterCard Incorporated (MA) and Visa, Inc. (V), surprised the market in 2016 with the rate at which its business improved following the loss of exclusive relationships with the likes of Costco Wholesale Corporation (COST) and JetBlue Airways Corporation (JBLU). With four straight earnings beats and counting, American Express has strong momentum heading into 2017. (See also: American Express Acquisition Boosts Fraud Protection.)

Stanmore's price target assumes additional premiums of around 19%. The shares, which have rallied some 23% in the past three months, have risen 2.40% year to date, besting the 1.44% rise in the S&P 500 (SPX) index.

The company will report fourth quarter fiscal 2016 earnings results next week. To the extent that American Express can keep costs in line while boosting earnings and revenue, the shares should reach Stanmore's $90 target in 2017. (See also: American Express Trades Ex-Dividend Wednesday.)

For more information visit: www.gerhard.stief.com

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