Nomura Securities Trims PT on MasterCard (MA) after 'OK' Q1

May 2, 2013 8:06 AM EDT
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Price: $390.27 --0%

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Nomura Securities trimmed its price target on MasterCard (NYSE: MA) from $611 to $593 following Q1 results but maintained a Buy rating.

Analyst, Bill Carcache said, "Overall, MA delivered an OK quarter, given the macro backdrop. International volumes remained relatively resilient, with strong highteens performance in APMEA and LatAm. US results were constrained by ongoing challenges in credit (particularly given MA’s overweight exposure to C) and the anniversary of Durbin-related PIN debit (juiced 1Q12 results), compounded by a deteriorating macro environment. We have no doubt the company is hard at work at addressing its US-based credit challenges, as evidenced by the string of new wins that it hasannounced in the category, including a new BoA consumer credit exclusive. That said, it will take time for these wins to scale, and we therefore find ourselves in a transitional period of relatively sluggish domestic volumes as new business ramps up."

The firm moves FY13E EPS from $25.48 to $25.62; FY14E EPS from $30.19 to $31.19.

For an analyst ratings summary and ratings history on MasterCard click here. For more ratings news on MasterCard click here.

Shares of MasterCard closed at $539.82 yesterday.

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