UPDATE: Morgan Stanley Raises PT on American Express to $56

Morgan Stanley is out with its report today on American Express (NYSE:

), raising its PT to $56. In a note to clients, Morgan Stanley writes, "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). Our price target of $56 implies a 13.0x 2012 PE and an 8% absolute return." Morgan Stanley maintains Overweight on AXP. At the time of posting, shares of AXP were trading pre-market at $51.93, down 0.31% from Wednesday's close.