American Express Shares Exceed Analyst Target; Downgrades Looming
Recently, shares of American Express Co. (Symbol: AXP) have risen above the average 12-month target price set by analysts, currently trading at $298.92 per share, compared to the average target of $296.04. When a stock exceeds its analyst target, there are two common choices: analysts may downgrade their valuations or adjust their target prices higher. Their decisions can also reflect the underlying business fundamentals driving the stock’s performance. If conditions are improving for American Express, raising the target price may be warranted.
Within Zacks’ coverage universe, 26 analysts contribute to American Express’s average price target. However, this average masks a range of opinions. Some analysts have set lower targets, with one predicting a price of $230. In contrast, another analyst has set a target as high as $371. The standard deviation among these targets is $41.156.
The purpose of examining the average target for AXP lies in capturing the “wisdom of crowds.” This approach amalgamates insights from various analysts rather than relying on a single expert opinion. With AXP surpassing the average target of $296.04 per share, investors are prompted to evaluate the company further. They must consider whether $296.04 is simply a waypoint towards a higher target or if the valuation has become stretched enough to warrant selling some shares.
| Recent AXP Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 9 | 8 | 9 | 9 |
| Buy ratings: | 2 | 2 | 2 | 2 |
| Hold ratings: | 17 | 17 | 15 | 15 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 2 | 3 | 3 |
| Average rating: | 2.38 | 2.52 | 2.52 | 2.52 |
The average rating shown in the last row utilizes a scale from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Strong Sell. This analysis includes data provided by Zacks Investment Research via Quandl.com.
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Also see:
Past earnings
AIMD YTD Return
PBIB market cap history
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
