MasterCard (MA) PT Raised to $685 at Tigress Financial Partners

Tigress Financial Partners analyst Ivan Feinseth raised the price target on MasterCard (NYSE: MA) to $685.00 while maintaining a Strong Buy rating.

The analyst comments "We reiterate our Strong Buy rating and increase our 12-month price target to $685 as MA will increasingly benefit from the ongoing secular shift to electronic payments and the increasing need for cybersecurity and expanding acceptance and incorporating new ways to pay will continue to drive ongoing revenue, cash flow growth and further shareholder gains. MA will continue to benefit from growing consumer spending trends, especially on travel and its diverse capabilities in payments, services, security, and solutions, positioning the company for significant long-term growth. MA reported Q4 2024 revenue increased 14% Y/Y, 16% on a constant currency basis, to a record $7.49 billion, driven by growth in MA’s payment network and value-added services and solutions. Payment network net revenue increased 13% Y/Y, 15% on a constant currency basis, as gross dollar volume increased 12% Y/Y on a local currency basis to $2.6 trillion, cross-border volume increased 20% Y/Y, and switched transactions increased 11% Y/Y. MA has been developing and implementing significant AI initiatives for over a decade and leverages AI-powered insights to analyze threat data from every corner of the internet. MA continues to win significant partnerships and renewals across consumer payments, commercial new payment flows, services, and solutions. It also continues to progress in expanding acceptance, reimagining checkout, opening closed-loop systems, and enabling new verticals in consumer payments. MA customers have issued 3.5 billion Mastercard and Maestro-branded cards as of December 31, 2024. MA continues to emphasize the integral role of these services in its broader strategy, helping to bolster resilience in digital transactions amid ongoing consumer spending strength. New product development including the recently launched Mastercard One Credential, a single tokenized credential that enables users to manage multiple payment options, including credit, debit, prepaid, and BNPL (Buy Now, Pay Later) service and potentially the use of cryptocurrency in the future through their banking applications will continue to drive growth and increasing market share. MA will continue to see strong payment trends as a strong labor market and wage growth will continue supporting healthy consumer spending and ongoing new client wins. MA remains well-positioned to benefit from the global secular shift to electronic payments driven by the ongoing introduction of new payment technologies, increasing AI-driven fraud protection capabilities, and increasing consumer demand for secure and convenient payment services. MA’s substantial brand equity, market-leading position, 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 also enhances shareholder returns through ongoing dividend increases and share repurchases. We believe significant upside in the shares exists, and our 12-month price target of $685 represents a potential return with dividends of over 20% from current levels."

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