Shares of American Express Co. rallied 0.9% in premarket trade Tuesday, after the credit card and financial services company was upgraded at J.P. Morgan, which cited expectations continued consumer strength and the potential for lower tax rates. Analyst Richard Shane raised his rating to overweight from neutral, and lifted his stock price target to $90, which is 17% above Friday’s closing price of $76.62, from $76. “We expect that personal tax rate reductions will disproportionately benefit [American Express’s] higher income consumers, as well as post a tailwind to the company’s corporate [travel and entertainment] spend,” Share wrote in a note to clients. He said the stock’s valuation remains attractive despite the postelection rally, as it is the only one of card issuers still trading at a discount to its historical relative multiple to the S&P 500 . The stock has run up 14% since the election, while the SPDR Financial Select Sector ETF has climbed 18% and the Dow Jones Industrial Average has gained 8.5%.
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