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American Express Shares Fall on Nomura Ratings Cut

The payment giant's shares were falling Thursday after analysts cut their outlook.

Shares of American Express (AXP) 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.

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