Loop Capital analyst Dominick Gabriele initiates coverage on MasterCard (NYSE: MA) with a Buy rating and a price target of $631.00.

The analyst comments: "MA has significant growth opportunities including penetrating new geographies, VASS, agentic transactions, cash to card (international), and cross border volumes. Through the many avenues to generate new transactions, including market share wins, we expect MA net revenue growth to far exceed the payment processors. Given market positioning and LT likely sustained revenue growth levels in the LDDs, we believe MA's stock is oversold due to investor worries regarding stablecoin penetration, slowing payment industry revenue growth worries, AI and regulation that is unlikely to materialize. Agentic commerce is a positive for card networks while MA continues to build out capabilities to position themselves at the center of various stablecoin payment transactions. Our 2026FYE and 2027FY adjusted EPS expectations are above consensus. MA's diverse business that is agnostic to where a consumer spends within retail or services, leads us to believe they are well positioned to maintain volume and EPS growth even if travel spend has been somewhat impacted in the US and the middle east NT. Valuation is compelling given adjusted EPS growth of ~15%."

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Shares of MasterCard closed at $494.00 yesterday.