Recent Changes Are Transforming the Narrative for Amex
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
0mins
Should l Buy AXP?
Source: Yahoo Finance
Analyst Price Target Updates: American Express's consensus analyst price target has slightly increased from $350.87 to $351.87, reflecting a mix of bullish and bearish perspectives among analysts regarding the company's growth and valuation.
Bullish Analyst Sentiment: Several firms, including BofA and Truist, have raised their price targets significantly, citing strong Q3 performance and growth expectations, while others like UBS and DZ Bank express cautious optimism.
Bearish Concerns: Some analysts, such as BTIG and Freedom Broker, maintain sell ratings due to concerns over valuation and lower-than-expected Q4 earnings guidance, highlighting a cautious outlook despite recent positive performance.
New Offerings and Financial Outlook: American Express is enhancing its premium offerings in Las Vegas and has updated its 2025 revenue growth outlook to 9-10%, alongside a significant share repurchase program totaling $13.5 billion.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 342.880
Low
280.00
Averages
379.06
High
425.00
Current: 342.880
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Indirect Stock Holdings: By owning shares of Berkshire, investors can indirectly hold positions in five other stocks, including Apple, Alphabet (Google's parent), Amazon, Chevron, and Mastercard, thereby achieving broader market exposure.
- Strong Long-term Prospects: Berkshire's portfolio also includes companies like American Express, Coca-Cola, and Visa, which have solid long-term growth potential, enhancing its investment appeal.
- Management Stability: Although Warren Buffett is no longer CEO, he remains confident in the company's future and believes that under Greg Abel's leadership, Berkshire's prospects will improve, demonstrating the stability of its governance and potential for continued growth.
See More
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- American Express Earnings Analysis: American Express reported Q4 earnings of $3.53 per share, falling short of expectations and causing a more than 10% drop from its early January peak; however, its total revenue still grew 9% year-over-year, indicating resilience in its affluent customer base, with projected earnings per share of $17.30 to $17.90 in 2026, reflecting the company's optimistic outlook.
- Apple Sales Growth: Apple's fiscal Q1 iPhone sales surged 23% year-over-year to $85.3 billion, despite a slight stock decline due to market focus on AI; consumer anticipation for future AI tools is driving sales, showcasing the company's strong performance in the tech sector.
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- Market Sentiment Impact: Despite the stock price declines of American Express and Apple due to market pessimism, their fundamentals remain strong, suggesting that investors should focus on long-term potential rather than short-term fluctuations.
See More
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- American Express Earnings Highlights: Despite fourth-quarter earnings of $3.53 per share falling short of expectations, leading to a more than 10% drop from early January highs, the company's total revenue still grew 9% year-over-year, showcasing the resilience of its affluent cardholder base and an expected recovery in growth.
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- Brewer Investment Opportunity: Berkshire Hathaway's investment in Constellation Brands began in late 2024 and grew to a $2 billion stake by mid-2025; although the company faces declining interest in alcoholic beverages, a recovery in the economy is expected to boost its business.
- Market Sentiment Impact: The stock price fluctuations of American Express and Apple reflect broader market pessimism, with analysts suggesting that this dynamic could reverse as investors reassess the companies' fundamentals, presenting potential investment opportunities.
See More
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- Political Pressure Intensifies: Amid persistent inflation, Trump and Sanders have found common ground in seeking to lower credit card annual percentage rates, with Trump proposing a 10% cap and Sanders advocating for a permanent 15% cap, potentially reshaping the profitability of credit card companies.
- Cautious Industry Response: Major credit card issuers like Capital One are in a holding pattern amidst political rhetoric, fearing that if a cap is implemented, they will be compelled to cut credit lines, adversely affecting credit access for lower-income households.
- Profitability at Risk: Analysts predict that a long-term rate cap could reduce Capital One's earnings per share by 25% or wipe them out entirely, as credit card operations account for approximately 74% of its total revenue, primarily derived from interest on customer balances.
- Acquisition Impact Significant: Capital One's $35 billion acquisition of Discover last year will be affected by any interest rate limits, as Discover's credit card balances will also be impacted, further diminishing Capital One's competitive edge, especially without a robust payment network.
See More
Berkshire Likely Sold Additional Shares of Apple and Bank of America in Q4
Berkshire Hathaway's Filing: The company is set to release its fourth-quarter equity holdings, which will be closely examined by investors and analysts.
Warren Buffett's Leadership: This filing is particularly significant as it marks Warren Buffett's final quarter leading Berkshire Hathaway, raising interest in any strategic moves made by him and his team.
See More
