BMO Capital Markets believes that American Express (AXP) is well-positioned for growth despite recent challenges, including a 17% decline in share price in 2026 attributed to rising operating costs and macroeconomic uncertainties.
Analyst Andrew Bauch emphasized that the company's premium card ecosystem is expanding, particularly among younger consumers who are increasingly opting for fee-paying products. He noted that AXP's strategy of reinvesting in its operations is expected to enhance growth by creating a synergistic effect among card fees, customer retention, and engagement.
Bauch forecasts that this approach will lead to billed business growth exceeding market expectations by 1-2 percentage points over the next two years. The consensus among analysts is largely positive, with 17 out of 32 recommending a buy or strong buy on the stock, indicating a favorable outlook for American Express in the premium credit card market