Buy this 'resilient' credit card stock even as spending headwinds persist, says Bank of America

American Express can ride out a consumer spending crunch better than most, according to Bank of America. The firm upgraded the credit card and lending stock to buy from neutral. And while it lowered its price target to $274 per share from $325, that still implies upside of about 11%.

American Express stock has pulled back more than 16% in 2025. In April alone, the stock has dipped about 8%. AXP YTD mountain American Express stock in 2025.



But analyst Mihir Bhatia said the pullback could be a good entry point for investors, despite macroeconomic concerns lingering tied to consumer spending. "We think the current downtick offers long-term oriented investors an opportunity to buy a high-quality company at a reasonable valuation," Bhatia said. "Spending is slowing but we believe higher income consumers, who comprise Amex's customer base, will prove to be more resilient from a credit and spending perspective," Bhatia said.

"BAC aggregated credit and debit card data shows higher-income households have largely had higher card spending growth than middle- or lower-income peers for more than a year." American Express shares rose slightly after the upgrade. Analysts are split on the stock.

LSEG data shows that, of the 31 who cover the stock, 11 have a buy or strong buy rating. Another 18 rate it as a hold, while two others have an underperform or sell rating. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange.

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