Summary:
- American Express reports robust first-quarter results with revenues reaching $17 billion.
- Analysts forecast a potential 15.74% upside in the stock's price within a year.
- New card acquisition driven by younger demographics bolsters future growth prospects.
Stellar Performance in Q1 2025
American Express (AXP, Financial) has delivered impressive financial performance in the first quarter of 2025. The company reported revenues of $17 billion, representing an 8% increase over the same period last year. Net income also experienced significant growth, climbing to $2.6 billion, or $3.64 per share. Contributing to this success was the addition of 3.4 million new cardholders, with Millennials and Gen Z leading the charge. Furthermore, card fees surged by 20%, emphasizing strong consumer engagement.
Wall Street Analysts' Insights
Analysts have set their sights on the future trajectory of American Express Co (AXP, Financial) stock. The consensus from 26 analysts positions the average one-year price target at $294.61. The projections range from a high of $371.00 to a low of $230.00. With the current stock price standing at $254.54, these estimates suggest a potential upside of 15.74%. For further information, explore the American Express Co (AXP) Forecast page.
Brokerage Recommendations
The collective opinion of 31 brokerage firms results in an average recommendation for American Express Co (AXP, Financial) of 2.6, translating to a "Hold" rating. This rating scale runs from 1, indicating a Strong Buy, to 5, representing a Sell. This consensus reflects a balanced view of the stock's potential amid its strong quarterly results and market dynamics.
Evaluating GF Value
According to GuruFocus estimates, the projected GF Value for American Express Co (AXP, Financial) in one year is $267.47. This figure suggests a modest upside of 5.08% from the current stock price of $254.54. The GF Value represents GuruFocus' estimate of the stock's fair trading value, calculated using historical trading multiples, past business growth, and future performance forecasts. Detailed insights are available on the American Express Co (AXP) Summary page.
