FBR Capital Lifts PT on MasterCard (MA) to $575

February 1, 2013 11:00 AM EST
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Price: $108.53 -0.12%

Rating Summary:
    23 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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FBR Capital raised its price target on Outperform-rated MasterCard (NYSE: MA) from $490 to $575, reflecting increased FY14 EPS estimates and expectation that the continued secular shift to electronic payments, combined with improving operating margin, will drive 20%+ EPS CAGR 2013-2015.

The firm redueced FY13E EPS from $25.52 to $25.10, reflecting lower processed transactions due to lapping of business wins, and increase FY14E EPS from $30.38 to $30.45, reflecting better operating margin.

"While MA trades at a relatively high P/E multiple, we note the high projected EPS growth and attractive operating margin despite global macroeconomic headwinds. In addition, we believe investors are becoming increasingly confident that regulatory/legislative mandated actions (SEPA, etc.), along with new technologies (EMV, etc.), will have a manageable impact on the business."

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 $518.40 yesterday.

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