UPDATE: Morgan Stanley Upgrades American Express on New OptBlue Program

In a report published Monday, Morgan Stanley analyst Betsy Graseck upgraded American Express (NYSE: AXP) from Neutral to Overweight and raised the price target from $90 to $100. Graseck believes the new OptBlue program and improving economy will increase estimated EPS by 1-2%.

In the report, Morgan Stanley stated, "We believe Amex can win over small merchants with its OptBlue program, boosting US acceptance closer to V/MA. Look for 7%/14% rev/EPS CAGR through 2016 as Amex takes share."

On Friday, American Express closed at $87.00.