© Reuters. Barclays positive on American Express (AXP) longer-term growth prospects
American Express (NYSE:) shares were initiated with an Overweight rating and $184 per share price target at Barclays on Wednesday.
Analysts at the firm told investors in a note covering the US consumer finance sector that out of 22 names in its coverage universe, AXP is one of nine it rates as Overweight.
The stocks the investment bank is bullish on are consistent with the firm’s views of total return potential, growth through the cycle, balanced mortgage business models, and credit tailwinds, along with cheap valuation.
“We view AXP as the best card issuer and we are positive on the longer-term growth prospects around the company’s penetration of the Millennial and Gen Z cohorts,” said analysts at Barclays.
“AXP generates industry-high ROE at 30%+ and has a demonstrated history of consistent revenue and EPS growth. Bears will argue that the company’s 10% + revenue growth target for 2024 and beyond is at risk, but we would argue that it is adequately priced in at 12.5x P/E.”