Zacks Investment Research Reiterates Buy Rating for Mastercard (MA)

Mastercard (NYSE:MA)‘s stock had its “buy” rating reiterated by Zacks Investment Research in a research report issued on Tuesday. They currently have a $210.00 price target on the credit services provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 6.29% from the company’s current price.

According to Zacks, “Mastercard’s earnings of $1.78 per share beat the Zacks Consensus Estimate by 5.95% and were up 33% year over year. Better-than-expected results were primarily backed by higher switched transactions, increase in cross-border volume and gross dollar volume as well as gains from acquisitions. An increase in year-over-year rebates and incentives was a partial dampener. Mastercard’s stock has outperformed the industry in a year's time. The company is poised for growth, given its solid market position, ongoing expansion and digital initiatives plus significant opportunities from the secular shift toward electronic payments. Its numerous acquisitions aided revenue growth. However, escalating costs, higher incentives and rewards will put pressure on the company’s bottom line. “

A number of other research analysts have also commented on MA. Oppenheimer upped their price target on Mastercard from $197.00 to $215.00 and gave the company an “outperform” rating in a research report on Tuesday, July 17th. Wolfe Research initiated coverage on Mastercard in a research report on Tuesday, July 17th. They set an “outperform” rating for the company. Bank of America increased their target price on Mastercard from $210.00 to $230.00 and gave the stock a “buy” rating in a research report on Tuesday, July 17th. Cowen reissued a “buy” rating and issued a $207.00 target price on shares of Mastercard in a research report on Friday, July 20th. Finally, Raymond James initiated coverage on Mastercard in a research report on Tuesday, July 24th. They issued an “outperform” rating and a $244.00 target price for the company. Three investment analysts have rated the stock with a hold rating, twenty-six have issued a buy rating and two have assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $218.59.

Shares of MA stock opened at $197.58 on Tuesday. The stock has a market cap of $205.67 billion, a P/E ratio of 43.14, a P/E/G ratio of 1.71 and a beta of 1.22. Mastercard has a 1-year low of $140.61 and a 1-year high of $225.35. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.55 and a quick ratio of 1.55.

Mastercard (NYSE:MA) last released its quarterly earnings results on Tuesday, October 30th. The credit services provider reported $1.78 EPS for the quarter, beating analysts’ consensus estimates of $1.68 by $0.10. The business had revenue of $3.90 billion during the quarter, compared to analyst estimates of $3.86 billion. Mastercard had a return on equity of 114.58% and a net margin of 35.88%. Mastercard’s quarterly revenue was up 14.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.34 EPS. As a group, equities research analysts expect that Mastercard will post 6.43 EPS for the current fiscal year.

In related news, Director Richard K. Davis acquired 2,475 shares of Mastercard stock in a transaction that occurred on Friday, November 2nd. The stock was bought at an average price of $196.37 per share, with a total value of $486,015.75. Following the transaction, the director now directly owns 3,468 shares in the company, valued at $681,011.16. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.32% of the stock is owned by company insiders.

Hedge funds have recently bought and sold shares of the stock. Fulton Bank N.A. boosted its stake in shares of Mastercard by 2.0% in the 3rd quarter. Fulton Bank N.A. now owns 11,893 shares of the credit services provider’s stock worth $2,648,000 after buying an additional 235 shares during the last quarter. San Francisco Sentry Investment Group CA raised its holdings in Mastercard by 4.2% in the 3rd quarter. San Francisco Sentry Investment Group CA now owns 6,300 shares of the credit services provider’s stock worth $1,402,000 after purchasing an additional 254 shares during the period. Harvest Fund Management Co. Ltd raised its holdings in Mastercard by 8.8% in the 2nd quarter. Harvest Fund Management Co. Ltd now owns 3,213 shares of the credit services provider’s stock worth $631,000 after purchasing an additional 259 shares during the period. Wetherby Asset Management Inc. raised its holdings in Mastercard by 1.6% in the 3rd quarter. Wetherby Asset Management Inc. now owns 16,360 shares of the credit services provider’s stock worth $3,642,000 after purchasing an additional 259 shares during the period. Finally, Meiji Yasuda Asset Management Co Ltd. raised its holdings in Mastercard by 0.6% in the 3rd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 43,276 shares of the credit services provider’s stock worth $9,634,000 after purchasing an additional 260 shares during the period. 74.46% of the stock is owned by institutional investors.

Mastercard Company Profile

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services.

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