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American Express downgraded at BofA on valuation, muted spending backdrop

BofA analyst Mihir Bhatia downgraded American Express to Neutral from Buy with a $263 price target. While the firm maintains a favorable view of AmEx’s execution and longer-term strategy, recent commentary from retailers and travel companies suggests that the spending backdrop is challenging and the firm sees limited incremental upside given subdued billings volume growth and the stock’s current premium valuation, the analyst tells investors.

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