Deutsche Bank Upgrades MasterCard (MA) to Buy, To Cheap Compared to Visa

Deutsche Bank upgrades MasterCard (NYSE: MA) from Hold to Buy, raised EPS estimates and raised its price target to $205. The firm said the stock is too cheap relative to rival Visa.

Commenting on the upgraded, the firm said, "We deem MA's 35% discount to Visa (NYSE: V) too steep and have higher conviction that MA can approach +20% (constant FX) EPS growth this yr even w/o high-single digit revs growth. Although MA has made no commitments, we have no reason to doubt continued upside potential given an unblemished track record (since 2006 IPO). We may be exposed to volatility on swine flu concerns/upcoming analyst day, but other overhangs (US interchange regs) may be dying down for now."

The firm lowered their '09 revenue growth forecast from +1% YoY to -1% but raised their '09 EPS from $10.50 to $10.80.

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