American Express can do well even as the U.S. customer deals with headwinds, according to Bank of America. The bank called American Express a leading choice, repeating a buy ranking and a rate target of $205 per share. That target suggests benefit of almost 20% from Monday’s close. Analyst Mihir Bhatia stated regardless of dangers staying to the wider sector if customer costs slows and credit stabilizes, American Express ought to continue to be more durable than peers. “AXP is our top pick in the sector due to its super-prime and high income cardmember base, which is better protected from inflation pressure,” Bhatia stated. “US Consumer credit performance has been resilient, new card acquisitions strong, and spending momentum solid.” American Express stock has actually included more than 16% in 2023, exceeding competitors Visa and Mastercard. AXP YTD mountain American Express stock has actually climbed up 16.2% from the start of the year. But targets for the rest of 2023 entering into 2024 are still worrying for AmEx, Bhatia included, versus a weakening macroeconomic background along with “exhaustion of COVID bounce-back travel spending.” American Express will report 2nd outcomes on July 21. Analysts surveyed by FactSet projection changed profits per share of $2.81 while BofA anticipates $2.79. “The uncertain macroeconomic picture (and a looming recession) remains a key overhang for the consumer finance stocks in our coverage. 2Q results and earnings calls could provide incremental clarity about the health of the U.S. consumer, real-time data on spending trends, and management expectations about credit outlooks,” the expert composed. — CNBC’s Michael Bloom added to this report.