American Express is going to start lending out a lot more money so buy the stock, JPMorgan says


Chris Ratcliffe | Bloomberg | Getty Images

Investors should buy American Express shares because new loan product offerings will drive strong earnings growth in the coming years, according to JPMorgan, which reiterated its overweight rating on the financial company.

At its investor day Wednesday American Express offered a "positive outlook as the company appears to be on the path to revenue and earnings growth," analyst Richard Shane wrote in a note to clients Thursday. "We believe that management has established realistic objectives … that should be the foundation for enhanced shareholder value and future price appreciation. ... Lending to existing customers [is] a key growth driver."

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