American Express: American Express Receives Upgrade: What Makes This Stock So Appealing?

BofA Securities analyst Mihir Bhatia upgraded American Express Co (NYSE:AXP) from Neutral to Buy and lowered the price target from $325 to $274 Friday.Bhatia noted the current downtick offers long-term oriented investors an opportunity to buy a high-quality company at a reasonable valuation.To be sure, the macro environment is uncertain and GDP growth is likely slowing. This is a headwind for revenue growth, the analyst noted.Also Read: American Express Analysts Expect Gains From Strong Card SpendingThe analyst added that American Express' high-quality customer base should drive more durable earnings while keeping credit losses in check.American Express' best-in-class management has been adept at navigating prior downturns, and Bhatia noted this time will be no different.The combination of a spend-centric model, super-premium cardholders and expense flex positions American Express to have decent earnings durability. Rewards costs will flex with cardholder spending and management has also expressed an ...Full story available on Benzinga.com