American Express upgraded to Buy ahead of Q2 earnings on strong consumer spending and credit trends

American Express (AXP) has been upgraded to Buy ahead of its Q2 earnings report on July 24, driven by strong consumer spending and improving credit quality. The company shows accelerating billed business and sharply declining delinquencies, indicating solid operational momentum. Guidance projects 9-10% revenue growth and EPS between $17.30 and $17.90, with potential for a 3% EPS increase after Q2. The stock’s strong performance and high return on equity support a $422 price target, implying a 21% upside potential.