American Express stock paces the Dow’s winners after Goldman analyst turns bullish

Shares of American Express Co.
AXP,
-3.54%
rose 0.7% toward a record close in midday trading Tuesday, after Goldman Sachs analyst Ryan Nash turned bullish on the financial and travel services company, citing expectations of a “big pickup” in consumer spending. The stock was the biggest advancer among the three of 30 Dow Jones Industrial Average
DJIA,
-0.00%
members gaining ground. Goldman’s Nash upgraded AmEx to buy from neutral, as his $225 stock price target implied a near-33% gain from current levels. While AmEx (AXP) has laid out expectations to reach its original goals for 2020 in 2022, with the economy improving meaningfully and “a big pick-up in consumer spending” since AXP gave this guidance in January 2021, he believes the company is poised to exceed its original 2020 expectations of earnings per share of $8.85 to $9.25 by 2022, given accelerating consumer spending, improving small and medium business spending and benign credit. “In fact, we believe AXP has the potential to see ~$10.00 in EPS in 2022 and double-digit growth beyond then as the multi-year recovery in [travel and entertainment] as well as robust growth in goods and services makes up for ‘lost ground’ in 2020,” Nash wrote in a note to clients. The stock’s gain comes as the SPDR Financial Select Sector ETF
XLF,
-0.57%
slumped 1.7% in midday trading and the Dow dropped 367 points, or 1.1%. The stock last closed at a record of $169.45 on June 25.

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View more information: https://www.marketwatch.com/story/american-express-stock-paces-the-dows-winner-after-goldman-analyst-turns-bullish-2021-07-06

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