American Express rated Buy with 13.4% annual return potential and strong Q1 growth in recurring fees.

American Express is rated Buy with a price target of $508 by 2030, implying a 13.4% annual total return. The company's revenue is increasingly driven by recurring card fees, which grew 18% in Q1 2026, helping decouple profits from cyclical spending patterns. Earnings per share rose 18% on 11% revenue growth, with improved cost efficiency and strong credit metrics. The ACE agentic commerce initiative offers additional upside, but the core business alone supports the positive outlook and capital allocation.