Piper Sandler analyst Bill Carcache has initiated coverage on American Express with an Overweight rating and a price target of $396. The rating suggests a positive outlook on the company's stock performance relative to the broader market.

Analyst Details

Bill Carcache, an analyst at Piper Sandler, issued the rating and the accompanying price target. The Overweight designation indicates that the firm expects the stock to outperform the average return of the analyst's coverage universe over the next 12 to 18 months.

American Express Company announced the results of its company-run 2026 Dodd-Frank Act Stress Test (DFAST), confirming it will maintain its Stress Capital Buffer (SCB) requirement of 2.5 percent through September 30, 2027. This decision aligns with the Federal Reserve's February 4, 2026, announcement to maintain existing SCB requirements until 2027, absent supervisory action. The results reflect the strength of the company's balance sheet and its differentiated business model.

Capital Returns and Dividend Increase

American Express has returned $8.7 billion of capital to shareholders through share repurchases and common share dividends during the 12 months ended March 31, 2026. As part of its capital management strategy, the company increased its quarterly dividend on common shares by 16 percent to $0.95 per share. This increase applies beginning with the first-quarter 2026 dividend declaration.

Stress Test Methodology

The disclosed stress test results are based on hypothetical scenarios prescribed by the Federal Reserve and other assumptions required under the DFAST rules. These results are not forecasts or predictions of future economic conditions or company performance. American Express noted that its DFAST results may differ from those calculated and published by the Federal Reserve Board due to differences in models, methodologies, assumptions, and applicable capital and accounting rules.

Key Financial Disclosures