American Express Has More Room to Run Despite Rising Competition, Analyst Says
Key takeaways
- American Express is seen as a growth play with upside potential, but regulatory fines add a risk layer.
- BMO target $380
- RBC target $400
- BMO upside 25%
What happened
BMO’s analyst Andrew Bauch set a $380 target, about 25% upside from the current $304.25 price, citing a growing premium card ecosystem and fee‑paying younger customers. RBC’s Jon Arfstrom lowered its target to $400 but kept the rating, projecting Q3 earnings of $4.47 per share and a full‑year 2026 EPS of $17.60. The company is also slated to report Q3 earnings on Oct. 23, with analysts expecting $4.54 EPS and $20.09 billion in revenue. Separately, AXP faces a $350 million civil penalty for…
Why it matters
The new coverage signals confidence in AXP’s ability to grow revenue and earnings through its premium card business, despite competitive pressures. The price targets imply significant upside potential for investors, while the Q3 earnings guidance provides a near‑term benchmark for performance. The civil penalty…
Short-term and longer-term
Short-term. In the next few days, AXP shares could react to the Q3 earnings release on Oct.
Longer-term. Over the coming months, investors should monitor AXP’s ability to sustain premium card growth and manage regulatory compliance costs.