Shares of MasterCard (MA), Visa (V) Tumble on Analyst Comments Following Weak Card Data
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Price: $573.85 +0.02%
Rating Summary:
43 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
43 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Shares of MasterCard (NYSE: MA) and Visa (NYSE: V) fell 10% and 3%, respectively, on concerning card payment data from JPMorgan (NYSE: JPM) yesterday. The firm reported that charge volume fell 7.6% during Q4, compared to a 4.6% increase in Q3.
With similar card volume results coming out of Bank of America (NYSE: BAC) and Citigroup (NYSE: C) this morning, MasterCard and Visa are tumbling once again today. Shares of MasterCard are down 5.3% to $123.55, while Visa's stock is down 8% to $45.43.
As BofA, Citi and JPMorgan make up the three largest US issuers of Visa/MasterCard cards, today's data is certainly material to the two largest credit card processors. Several analysts are out with negative notes regarding the card payment data, adding further downside to today's price action.
KeyBanc, after cutting estimates just yesterday, downgraded both Visa and MasterCard intraday, moving each stocks investment rating from Buy to Hold. In the KeyBanc report, the firm notes that Bank of America's debit purchase volume only grew 3.5%, compared to 12.5% in 3Q08 and 14.5% in 2Q08, and its credit card purchase volume fell roughly 17%, compared to down just approximately 1% last quarter. Meanwhile, Citi's card purchase sales in North America declined 15%, compared to a 3% decline last quarter.
Analysts at Piper Jaffray also issued a report today related to the data points out of BofA, Citi and JPMorgan, calling credit trends in-line with expectations, but spending trends and loan growth "a bit weaker." Piper Jaffray maintains its Buy rating and $72 price target on Visa.
MasterCard Incorporated, together with its subsidiaries, provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers cheque programs.
Visa, Inc., through its subsidiaries, operates retail electronic payments network worldwide.
With similar card volume results coming out of Bank of America (NYSE: BAC) and Citigroup (NYSE: C) this morning, MasterCard and Visa are tumbling once again today. Shares of MasterCard are down 5.3% to $123.55, while Visa's stock is down 8% to $45.43.
As BofA, Citi and JPMorgan make up the three largest US issuers of Visa/MasterCard cards, today's data is certainly material to the two largest credit card processors. Several analysts are out with negative notes regarding the card payment data, adding further downside to today's price action.
KeyBanc, after cutting estimates just yesterday, downgraded both Visa and MasterCard intraday, moving each stocks investment rating from Buy to Hold. In the KeyBanc report, the firm notes that Bank of America's debit purchase volume only grew 3.5%, compared to 12.5% in 3Q08 and 14.5% in 2Q08, and its credit card purchase volume fell roughly 17%, compared to down just approximately 1% last quarter. Meanwhile, Citi's card purchase sales in North America declined 15%, compared to a 3% decline last quarter.
Analysts at Piper Jaffray also issued a report today related to the data points out of BofA, Citi and JPMorgan, calling credit trends in-line with expectations, but spending trends and loan growth "a bit weaker." Piper Jaffray maintains its Buy rating and $72 price target on Visa.
MasterCard Incorporated, together with its subsidiaries, provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers cheque programs.
Visa, Inc., through its subsidiaries, operates retail electronic payments network worldwide.
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