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Why Wall Street Loves Mastercard Stock

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Bullish recommendations

Despite having a premium valuation, analysts are still bullish about Mastercard (MA) and foresee high single-digit growth in its stock price. The company’s consistently strong quarterly performance numbers and its encouraging outlook for 2018 are reflected in its ratings.

About 93.0% of the 41 analysts covering Mastercard (MA) stock recommended a “strong buy” or a “buy.” Just 7.0% of these analysts recommended a “hold,” and there weren’t any “sell” recommendations.

Wall Street’s target price of $229.28 for MA stock signifies an 8.6% surge from its current level of $211.09. MA stock gained ~48.0% in 2017, and it’s returned ~40.0% year-to-date.

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Where do MA’s peers stand?

Analysts appear to be bullish about the financial transaction processing industry and have given “buy” recommendations to Mastercard’s peers, including Visa (V), PayPal (PYPL), and Global Payments (GPN).

Of the 38 analysts covering Visa stock on September 7, 13 provided a “strong buy” opinion, 21 recommended a “buy,” and four had a “hold” stance. Wall Street’s target price of $160.09 represents an 11.8% increase from the current price of $143.20.

PayPal received “strong buy” ratings from 14 of the 44 analysts, 20 gave “buy” ratings, and ten had “hold” recommendations on the stock. The target price of $96.58 represents an 8.7% increase from its current price of $88.82.

Eleven of 32 analysts provided “strong buy” recommendations on Global Payments (GPN). Fourteen analysts recommended a “buy,” six recommended a “hold,” and one analyst recommended a “sell.” GPN’s target price of $132.90 indicates a 7.4% rise from its current market price of $123.78.

Mastercard (MA) comprises ~4.5% of the SPDR SSGA Gender Diversity Index ETF (SHE).

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