JPMorgan says Amethian Express may seem expensive, but it still has room to operate due to the restart of the Iran war. The investment bank upgraded American Express from neutral to overweight. The company’s price target is $400, suggesting a potential upside of 14% from Monday’s closing price. “AXP trades at a slight premium to the group, but we believe the premium is justified given the defensive nature of its earnings,” analyst Richard Shane said in a note to clients on Monday. “In an environment defined by emerging geopolitical risks and heterogeneous consumers, AXP provides investors with exposure to the most isolated cohort in consumer finance.” American Express is expected to trade at a price-to-earnings ratio of 17.4 times by the end of 2027, according to consensus estimates compiled by JPMorgan. That’s more than double Capital One Financial’s estimated price-to-earnings ratio. American Express shares have risen 8% in the past three months as the company’s credit card business remained strong despite geopolitical uncertainty, largely due to its focus on high-net-worth customers. JPMorgan said this gives the company an advantage over some competitors, especially after President Donald Trump ended the ceasefire between the United States and Iran last week. AXP 3M Mountain stock has increased 8% in the past three months. “The ‘pause, not peace’ dynamics we explored in the first quarter have resurfaced, reintroducing the risk of higher energy prices that hit low- and moderate-income consumers hardest,” Schoen wrote. “AXP’s affluent, high-income customer base is relatively insulated from the Middle East crisis and resulting energy crunch.” International benchmark Brent crude oil futures for September delivery were last traded at $78.64 a barrel, up more than 9% over the past five days. Street shops are divided into American Express. Of the 32 analysts covering the bank, 15 rate the stock as a “buy” or “strong buy,” while 16 rate it a “hold,” according to LSEG data.
