Visa (V), Mastercard (MA) Slammed on Analyst Downgrade - "Who's left to buy?"

July 9, 2012 11:20 AM EDT
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The Financial sector ETF (NYSE: XLF) is trading lower as shares of Visa (NYSE: V) and Mastercard (NYSE: MA) get slammed in early trading on Monday. The move lower is in response to an analyst downgrade to Sell. The problem with these companies, according to analysts at UBS, is that everybody loves them, and "if everybody loves the stocks and owns the stocks, who's left to buy?"

Visa (NYSE: V) and Mastercard (NYSE: MA) also sit near all-time highs and most investors do not seem to show concern that both of these companies have high exposure to the weakening global consumer. According the UBS analysts, over the next 3 to 6 months, a spending slowdown is inevitable.

UBS's price targets on Visa and Mastercard have been reduced $14 and $54 respectively, to $113 and $403.

In other financial sector news, investors are eagerly awaiting earnings information from JPMorgan (NYSE: JPM). JPM will be reporting earnings this Friday. The announcement of 'London Whale' trading losses will grab headlines, but insiders will be scouring the overall financial results for clues about the health of the financial sector in the U.S.

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