FBR Capital Downgrades MasterCard (MA) to Market Perform

February 3, 2014 6:07 AM EST
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Price: $109.96 +1.32%

Rating Summary:
    24 Buy, 9 Hold, 1 Sell

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Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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FBR Capital downgraded MasterCard (NYSE: MA) from Outperform to Market Perform with a price target of $82 following lackluster Q4 results.

"The downgrade reflects our concern regarding MasterCard's exposure to potentially slowing emerging market economies, along with increased currency volatility, having a negative impact on MasterCard's results and investor sentiment," analyst Scott Valentin states.

He added, "APMEA and Latin America comprise 37% of MasterCard's GDV, and while posting strong current GDV growth rates, we believe they have the potential to slow. Management reiterated its FY13-FY15 guidance but noted that FY14 net revenue growth will be at the lower end of the 11%-14% range. We did not view quarterly results as negatively as the market, given gross revenue was better than expected, the miss was primarily driven by temporarily higher rebates and incentives, and quarter-to-date GDV trends were on average slightly better than 4Q13."

The firm cut FY14 EPS estimate to $3.03 from $3.13 and FY15 EPS estimate to $3.65 from $3.76.

For an analyst ratings summary and ratings history on MasterCard click here. For more ratings news on MasterCard click here.

Shares of MasterCard closed at $75.68 yesterday.

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