UPDATE: Morgan Stanley Raising Price Target On American Express Following Earnings

Morgan Stanley is out with a research report on American Express AXP after it reported earnings last night. It is raising its price target to $56 and it has an Overweight rating on shares. In a note to clients, Morgan Stanley writes, "AXP reported 2Q11 operating EPS of $0.96 (ex-V/MA litigation payments) vs. our estimate of $0.92. Beat was driven primarily by lower tax rate. We are increasing Operating EPS 7c in 2011 and 2012, on slightly better than expected 2Q11 results. We are also taking our PT up $2 to $56 on higher EPS and higher buybacks, driven by increased capital generation. AXP is trading at 12.1x our 2012 EPS estimate (vs historical 16-17x range)." Shares of AXP gained 28 cents yesterday to close at $52.09, a gain of 0.54%.