UBS analyst Erika Najarian has maintained American Express with a Neutral rating while raising the price target to $386 from $340. The adjustment reflects a revised outlook on the stock's valuation potential.

The previous target of $340 has been increased by $46, indicating a more optimistic stance on the company's future performance despite the neutral rating. The Neutral stance suggests the stock is expected to perform in line with the broader market averages.

Rating and Target Details

The following table outlines the revised rating and price target for American Express:

The decision to raise the price target comes as the firm assesses the company's current financial position and market conditions.

American Express has expanded redemption options for eligible U.S. Card Members by introducing Pay with Points with Apple Pay. This new feature allows users to redeem Membership Rewards points directly within the Apple Pay checkout experience for online and in-app purchases. The integration provides greater flexibility for Card Members to use points on everyday purchases without navigating away from the merchant's site or opening a separate app.

"Card Members want rewards that fit naturally into how they shop and spend," said Lisa Kalhans, Executive Vice President of U.S. Consumer Cards at American Express. "With this launch, we’re making it easier than ever for Card Members to use Membership Rewards points on the purchases they make every day."

How It Works

Eligible Card Members can access the redemption feature through the existing Apple Pay interface on iPhone or iPad. The process involves selecting Apple Pay at checkout, choosing an eligible American Express Membership Rewards Card, and selecting "Use Rewards" to specify the amount of points to apply. Points can cover all or a portion of the eligible purchase before the transaction is finalized.

Privacy and Security

When a user redeems Membership Rewards points through Apple Pay, Apple does not retain any transaction information linked to the user. The feature leverages the secure and private checkout experience inherent to Apple Pay, ensuring that redemption steps are integrated seamlessly into the payment flow.

Strategic Expansion

The launch follows a recent announcement that Fanatics will become an American Express Membership Rewards transfer partner within the next year. This upcoming partnership will allow members to transfer points into FanCash for redemption on authentic apparel, trading cards, collectibles, and exclusive experiences. These initiatives reflect American Express' ongoing strategy to provide redemption opportunities at brands and businesses relevant to its Card Members.