MasterCard (MA) PT Raised to $472 at Tigress Financial Partners

March 4, 2022 1:09 PM EST
Get Alerts MA Hot Sheet
Price: $284.34 -0.85%

Rating Summary:
    36 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 4 | New: 31
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Tigress Financial Partners analyst Ivan Feinseth raised the price target on MasterCard (NYSE: MA) to $472.00 while maintaining a Strong Buy rating.

The analyst comments "

We reiterate our Strong Buy rating and increase our 12-month price target to $472 as MA remains one of the best ways to play the ongoing secular shift to electronic and other new payment technologies and is well-positioned to benefit the post-pandemic recovery in consumer spending. MA recently reported strong Q4 results as consumer spending remains strong even in the face of Omicron headwinds. Q4 GPV (Gross Payment Volume) increased 23% Y/Y to $2.1 trillion. Revenue increased 27% Y/Y to $5.2 billion as purchase volume increased 27%, and spending trends continue to improve with cross-border spending now exceeding pre-pandemic levels and up 54%. Switched transactions increased by 27%. MA continues to introduce new technologies, new features, and new ways to pay. MA recently launched its enhanced financial service technologies, including BNPL (Buy Now Pay Later) capabilities. MA will also use its recent Fincity data aggregator acquisition, which includes consumers’ transaction histories as part of the BNPL credit decision process. MA continues to benefit from strong domestic spending and solid growth in cross-border spending, which has recently surpassed pre-pandemic levels. MA will continue to drive growth through ongoing innovation and the ongoing secular shift to all types of electronic payments, e-commerce, and omnichannel capabilities giving consumers more ways to pay, including contactless, QR codes, and micro-installment terms on a single transaction. MA has continued a strong cadence of new business wins throughout the past year that will continue as its ongoing investment in innovations and new ways to pay, including the recently announced expansion of its crypto card partner program, further enabling it to capitalize on the increasing interest in digital currencies. MA also continues to add cryptocurrency services and open banking efforts through the acquisition of CipherTrace and the planned acquisition of Aiia. MA’s substantial brand equity and market-leading position, together with innovative ability and successful execution, will continue to drive greater Return on Capital (ROC), gains in Economic Profit, and increases in shareholder value creation. MA further enhances shareholder value through ongoing dividend increases and share repurchases, having recently announced an 11% increase in its quarterly dividend and an additional $6 billion share repurchase authorization in late 2021. We believe significant upside in the shares exists and our 12-month price target of $472 represents a potential return of over 35% from current levels."

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