American Express Stock Rises on Strong Performance and Platinum Card Growth
American Express (AXP) stock rose this week following the company's reaffirmed confidence in its performance at the Barclays Global Financial Services Conference. Management reported first-half revenue growth of 10% on an FX-adjusted basis, leading to a raised full-year outlook while maintaining EPS guidance between $17.30 and $17.90. The success is largely attributed to the Platinum Card refresh launched over a year ago, which has driven card fee revenue growth despite a recent price increase. High-spending customers have shown strong retention rates, supporting AmEx's premium pricing strategy. The company also continues expanding its lounge network and travel partnerships, enhancing customer engagement in resilient spending categories like dining and travel. A valuation model projects AXP at $441 per share by December 31, 2028—implying a 36% total return from the current price. The projected growth is based on steady revenue expansion (9.2% CAGR), stable operating margins near 27%, and an exit P/E of 17.4x.
Tickers: $AXP