Shares of American Express (AXP) - Get American Express Company Report were lower Thursday after analysts with Nomura cut their rating on the stock to REDUCE from NEUTRAL. Nomura also dropped AmEx's price target to $56 from $62 a share, noting third-quarter earnings will likely fall below estimates. Nomura added that analysts are underestimating the significance of AmEx's loss of its longtime partnership with discount retailer Costco, and added the separation will likely squeeze AmEx's bottom line.
Elsewhere in the sector, options expert Skip Raschke of Real Money Pro, our premium site for active traders and professional investors, likes calls of the SPDR S&P Regional Banking ETF (KRE) - Get SPDR S&P Regional Banking ETF Report . Click here to sign up for a free 14-day Real Money Pro trial and see why.
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