American Express: Deutsche Bank maintains Buy, PT raised to $375 from $371.

American Express: Deutsche Bank maintains Buy, PT raised to $375 from $371.

American Express (AXP) saw a significant boost in its stock price on July 2, 2025, following the release of its second-quarter earnings report. Deutsche Bank, a prominent financial institution, maintained its "Buy" rating on the company while raising its price target to $375 from $371. This move comes after American Express reported impressive earnings that exceeded analyst expectations.

The company reported a non-GAAP EPS of $4.08 for the second quarter, surpassing estimates by $0.20. Revenue climbed to $17.86 billion, marking a 9.4% increase year-over-year, driven by enhanced card member spending and higher net interest income. Despite a rise in credit loss provisions to $1.4 billion, the net write-off rate decreased to 2.0% from 2.1% last year. American Express maintained its full-year revenue growth guidance of 8% to 10%.

Analysts from Deutsche Bank noted that the company's strong performance in the second quarter, coupled with its strategic focus on premium card offerings and partnerships, justifies their bullish stance. The firm also highlighted the company's solid revenue growth of 9.17% over the last twelve months, reaching $63.4 billion.

While American Express reported impressive earnings, some analysts have cited concerns over slowing travel expenditure trends. Monness, Crespi, Hardt maintained a Neutral rating, noting that airline spending showed no growth, contributing to broader slowdowns in the travel and entertainment category.

Despite these concerns, Deutsche Bank's price target adjustment reflects confidence in American Express's ability to navigate market challenges and continue its revenue growth trajectory. The firm's new price target of $375 is based on a 20x multiple, aligning with management's adjusted EPS growth range of 12-16%.

References:
[1] https://www.gurufocus.com/news/2987254/american-express-axp-surpasses-earnings-expectations-in-q2
[2] https://ca.investing.com/news/analyst-ratings/american-express-stock-price-target-raised-to-348-from-340-at-truist-93CH-4110597