Key Takeaways

Analysts from Bank of America on Friday upgraded American Express ( AXP ) stock to a "buy" rating, saying the credit card provider should be resilient through a potential downturn or recession.

They upgraded the stock, but cut their price target to $274 from $325 to reflect lowered revenue and earnings forecasts as they expect consumer spending to slow.

Bank of America is now one of six "buy" ratings among the 13 analysts tracked by Visible Alpha, along with five "hold" and two "sell" ratings, while its price target is now below the $308.67 consensus. The stock was up 2% at $252 in late trading Friday.

Amex Benefits from 'High-Quality Customer Base'

"The macro environment is uncertain and GDP growth is likely slowing," the analysts wrote. "This is a headwind for revenue growth. But we think Amex's high-quality customer base should drive more durable earnings while keeping credit losses in-check."

American Express shares have lost about 15% since the start of the year, which the analysts said "offers long-term oriented investors an opportunity to buy a high-quality company at a reasonable valuation."

The analysts noted that in prior downturns like the COVID pandemic and the first Trump administration's trade war, American Express stock "outperformed not only other card issuers but also the S&P 500."

The card issuer is set to report first-quarter earnings on Thursday, and Bank of America analysts said the company's outlook for the rest of 2025 will likely be more important than whether its first-quarter results beat or miss estimates.

American Express reported results in line with estimates last quarter as executives said spending was strong through the holiday season.

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