Mastercard (NYSE:MA) Upgraded to "Strong-Buy" at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded Mastercard to a "strong-buy", and across the sell‑side six analysts rate it Strong Buy, 21 rate it Buy and one rates it Sell, leaving a consensus average target price of $659.81.
• Mastercard posted quarterly EPS of $4.76 (beating estimates by $0.52) and revenue of $8.81 billion, up 17.5% year‑over‑year, with a 45.65% net margin and a 203.92% return on equity.
• The stock trades around $509.83 with a market capitalization of $454.67 billion, a P/E of 30.86 and a 52‑week range of $480.50–$601.77.

Mastercard (NYSE:MA - Get Free Report) was upgraded by equities research analysts at BMO Capital Markets to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other analysts have also recently issued research reports about the stock. Bank of America began coverage on shares of Mastercard in a research note on Thursday, March 5th. They issued a "buy" rating and a $700.00 price objective for the company. Morgan Stanley raised their price objective on shares of Mastercard from $665.00 to $678.00 and gave the company an "overweight" rating in a research note on Friday, January 30th. Macquarie Infrastructure boosted their price objective on shares of Mastercard from $660.00 to $675.00 and gave the company an "outperform" rating in a research report on Friday, January 30th. Tigress Financial boosted their price objective on shares of Mastercard from $730.00 to $735.00 and gave the company a "strong-buy" rating in a research report on Friday, March 13th. Finally, Cantor Fitzgerald raised shares of Mastercard to a "strong-buy" rating in a research report on Tuesday, January 27th. Six analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $659.81.

Mastercard Stock Down 0.3%

Shares of NYSE MA opened at $509.83 on Tuesday. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.36. Mastercard has a 52 week low of $480.50 and a 52 week high of $601.77. The firm has a 50-day moving average price of $508.40 and a 200 day moving average price of $538.62. The stock has a market capitalization of $454.67 billion, a price-to-earnings ratio of 30.86, a price-to-earnings-growth ratio of 1.64 and a beta of 0.83.

Mastercard (NYSE:MA - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The credit services provider reported $4.76 EPS for the quarter, beating the consensus estimate of $4.24 by $0.52. Mastercard had a net margin of 45.65% and a return on equity of 203.92%. The firm had revenue of $8.81 billion during the quarter, compared to analysts' expectations of $8.80 billion. During the same quarter last year, the business earned $3.82 earnings per share. The business's revenue for the quarter was up 17.5% compared to the same quarter last year. Equities research analysts anticipate that Mastercard will post 19.52 EPS for the current fiscal year.

Institutional Investors Weigh In On Mastercard

A number of institutional investors have recently bought and sold shares of MA. Vulcan Value Partners LLC boosted its stake in shares of Mastercard by 6.5% in the third quarter. Vulcan Value Partners LLC now owns 466,222 shares of the credit services provider's stock valued at $265,233,000 after purchasing an additional 28,331 shares during the period. Nicholson Wealth Management Group LLC boosted its stake in shares of Mastercard by 153.6% in the third quarter. Nicholson Wealth Management Group LLC now owns 2,856 shares of the credit services provider's stock valued at $1,625,000 after purchasing an additional 1,730 shares during the period. Murphy Middleton Hinkle & Parker Inc. purchased a new position in shares of Mastercard in the fourth quarter valued at $1,113,000. Mn Services Vermogensbeheer B.V. boosted its stake in shares of Mastercard by 1.5% in the third quarter. Mn Services Vermogensbeheer B.V. now owns 309,192 shares of the credit services provider's stock valued at $175,872,000 after purchasing an additional 4,700 shares during the period. Finally, Assetmark Inc. boosted its stake in shares of Mastercard by 4.5% in the fourth quarter. Assetmark Inc. now owns 229,299 shares of the credit services provider's stock valued at $130,902,000 after purchasing an additional 9,795 shares during the period. 97.28% of the stock is currently owned by hedge funds and other institutional investors.

Mastercard Company Profile

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses in more than 200 countries and territories. The company facilitates electronic payments and transaction processing for credit, debit and prepaid card products carrying the Mastercard brand, while also providing a range of payment-related services to issuers, acquirers and merchants. Its technology and network enable authorization, clearing and settlement of payments and support a broad set of use cases including point-of-sale, e-commerce and mobile payments.

Beyond core transaction processing, Mastercard offers a suite of value-added services such as fraud and risk management, identity and authentication tools, tokenization and digital wallet support, cross-border and commercial payment solutions, and data analytics and consulting services for merchants and financial partners.

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