UPDATE: UBS Downgrades Visa (V), MasterCard (MA) to Sell; Slowing Growth

July 9, 2012 7:34 AM EDT
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Price: $83.27 +1.36%

Rating Summary:
    24 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 19 | New: 11
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(Updated - July 9, 2012 10:37 AM EDT)

An analyst at UBS downgraded shares of both Visa (NYSE: V) and MasterCard (NYSE: MA) from Neutral to Sell Monday morning.

Analyst, John T. Williams, said, "V and MA shares sit near all-time highs despite exposure to a weakening global consumer spending backdrop—which makes a slowdown in key metrics inevitable over the next 3-6 months, in our view. While both possess expense leverage and remain attractive “safe havens” relative to banks and FinTech names, multiple data points indicate global growth is slowing—clear negatives for the shares."

Williams also noted that the potential Brooklyn (merchant litigation) settlement does remove an overhang, but doesn't change his overall thesis.

UBS lowers its price target on Visa from $127 to $113. For MA, price target was cut from $457 to $403.

MasterCard shares are trading down 3.6%; Shares of Visa, however, are down about 2.7%.

To see all the analyst calls on shares of MasterCard, click here. Or visit our Analyst Ratings page for Visa here.

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John T Williams, analyst UBS
TWS on 2012-07-17 14:11:49
Mark as Spam | Reply to this comment

I sure am glad he is not my broker.
What an Idiot to downgrade VISA

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