Underperforming American Express to rally 29% on Trump tax plan, Oppenheimer says

Kai Pfaffenbach | Reuters

Investors should buy American Express shares on the prospect of improving corporate spending and Donald Trump's tax reform plan, according to Oppenheimer, which upgraded the credit card company to outperform from perform.

American Express shares are up 13 percent versus the Financial Select Sector SPDR Fund's 17 percent return since the Nov. 8 election through Monday.

"AXP has lagged the financials rally post-election ... we still think investors should take a deeper look at the positives and are upgrading AXP shares ... T&E [travel and expense] spending should begin to rebound over the next six months," analyst Ben Chittenden wrote in a note to clients Monday. "AXP is not rate-sensitive, which is why we think it's been left behind. With that said, AXP's billed business has historically been very levered to GDP growth."