A new study of Morgan Stanley revealed the stock that has strong growth potential in the short term. Is about American Express, whose shares have already appreciated by almost 6% and exceed US$157, reaching a level not seen since the beginning of the month.
Specifically, Betsy Grasecka strategist at Morgan Stanley, said the card company is not improving revenue as strongly as it was after the pandemic, but said the slowdown will not be as bad as previously feared.
The analyst believes that now is an appropriate time to build a position in American Express stock, as it is trading at a deep discount.
Amex has not traded this cheap since 2019, in a steeper slowdown in growth. Yes, discretionary spending is slowing, but this is already included in the consensus estimates. The fintech was upgraded to “overweight” today and announced a $188 price target that suggests a 20% upside from this value.
American Express missed first-quarter earnings estimates
Last month, the New York-based company said its first-quarter financial earnings fell short of Street’s estimates.
Graseck forecasts a 13% compound annual growth rate (CAGR) for American Express over the next two years versus just 7.0% implied by its current share price. His research note also says:
From here, American Express offers the highest revenue growth, strong operating leverage and better credit quality.
American Express stock currently pays a dividend yield of 1.53% which makes up for one more reason to have it in your investment portfolio.
How to invest from Argentina
In Argentina you can invest in American Express quickly and easily. All you have to do is open a principal account in a brokerage firm regulated by the National Securities Commission and deposit the desired funds to acquire Cedears.
The Cedears or Argentine Certificates of Deposit are instruments that are equivalent to buying the underlying share listed abroad (NASDAQ: AXP), but they can be operated in pesos (BCBA: AXP) and follow the evolution of the CCL dollar, Therefore, they allow Argentine risk to be avoided and, at the same time, hedge against an eventual exchange jump.
Source: Ambito
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