Amex Expands Virtual Cards, Fuels Undervaluation Debate

American Express has expanded its virtual card offering for US commercial clients by integrating these cards into its @ Work platform and broadening travel-related usage through Conferma.

This upgrade aims to provide companies with more payment flexibility and tighter controls. However, the share price of American Express has cooled in the past month.

At a current price of $342.48, some analysts believe that American Express is undervalued by 9%, putting its fair value at around $374.94.

The company's robust credit quality and risk management enable it to pursue premium lending strategies and balance sheet growth without a commensurate rise in credit costs, supporting margin expansion and earnings resilience.