American Express' (AXP) "high-quality" customer base is expected to support steady earnings and limit credit losses despite the "uncertain" macro environment, BofA Securities said in a note Friday.

The analysts said they believe the recent dip in the stock presents a buying opportunity for long-term investors. While the economic outlook remains uncertain and slowing growth may weigh on revenue, Amex's customer base and "best-in-class management" should help the company navigate the cycle, as it has in past downturns.

They noted that while spending is moderating, higher-income consumers - who make up the bulk of Amex's customer base - are expected to remain more resilient in both spending and credit behavior.

BofA said the company's "combination of a spend-centric model, super-premium cardholders, and expense flexibility" positions it for earnings durability. Rewards expenses are expected to scale with cardholder activity, and management has the ability to adjust marketing spending to support EPS, the analysts added.

For Q1, BofA expects results to be roughly in line, though its forecast for year-over-year billings growth is slightly below consensus. The analysts believe the more critical focus for investors will be on any updates to full-year guidance and signs of how consumer spending is trending.

Citing increased uncertainty around tariffs and the growing likelihood of a gross domestic product slowdown, the analysts lowered their 2025 revenue growth and earnings per share estimates to 7.2% and $14.76, down from 8.3% and $15.23 respectively.

BofA upgraded American Express to buy from neutral, and adjusted its price objective to $274 from $325.

Price: 246.19, Change: -0.70, Percent Change: -0.28