Storied credit card giant American Express (AXP 1.84%) rode the express train to profit on Thursday. On news of several analyst price target increases, the company’s stock zoomed almost 2% higher on the day. That was more than good enough to top the S&P 500 (^GSPC -0.09%), which slumped by nearly 0.1%.
A trio of price target lifts
What helped was that not one, not two, but three analysts upped their fair value assessments of AmEx stock. The most substantial raiser was Jeff Adelson from prominent and influential investment bank Morgan Stanley. His new price target is $305 per share, a robust 21% higher than his previous tag of $252.
This doesn’t quite make him an AmEx bull, however, as he maintained his equal weight (read: hold) recommendation on the shares.
Although the other two price target raises weren’t as substantial, taken together, they bolstered the buy case for AmEx. Compass Point added $10 to its level for a new fair value assessment of $325 per share, although like Morgan Stanley, the researcher only feels the stock is a neutral. A more bullish Monness, Crespi & Hardt, meanwhile, upped its AmEx price target to $330 per share from $300 and kept its buy recommendation intact.
A solid company and a good stock to own
The reasons for these increases weren’t immediately apparent, but AmEx continues to be very much on the radar of both investors and analysts. The company has done well on the back of a frothy economy, as well as the dissipation of consumer worries about the effects of inflation. Given its prominence in the card payment industry and consistent profitability for many years, AmEx stock should be considered for any investor’s portfolio.
American Express is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.