Former executives of Redecard SA, the Brazilian processor of MasterCard Inc. payments, are "cautious" on the industry's outlook because of increasing competition, JPMorgan Chase & Co. analysts said.

In a meeting with JPMorgan Chase, former Redecard Chief Financial Officer Edson Santos and the ex-chief executive of Cielo, Antonio Luiz Rios da Silva, expressed caution "about the competitive landscape and pricing environment," analyst Saul Martinez wrote to clients last week.

The note prompted investors to sell Redecard stock Friday. The shares were off 2%, to $14.79, at 12 p.m. New York time. Earlier, they had fallen to $14.44, the lowest intraday level since Sept. 4.

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