Mastercard Earnings – Analysts Positive Ahead of Release

With Mastercard (NYSE: MA) set to release the results for its latest quarter on Thursday, before the open, analysts in the last week have posted research notes providing their thoughts and price targets.

Mastercard shares have rallied in the last few months, climbing over 8% in 2023 and 10% in the last 12 months.

Last week, Truist analyst Andrew Jeffrey raised the firm’s price target on Mastercard shares to $450 from $400, maintaining a Buy rating. The analyst, as part of a broader research note on FinTech names, said he believes investors should focus on relative 2022 FinTech outperformers, but he also contends that “a catalyst is needed” for 2023 outperformance and sees mergers & acquisitions as the most likely valuation driver.

On Mastercard, he said it will likely maintain its momentum as the factors driving its outperformance compared to the market last year remain intact.

Meanwhile, Jefferies analyst Trevor Williams raised the firm’s price target on Mastercard to $430 from $370, keeping a Buy rating on the stock. The analyst explained that the setups are tougher following the stock’s recent outperformance, but with the ongoing cross-border recovery and ability to preserve EPS in a softer macroeconomic environment, the networks remain Williams's favored sub-group.

Williams also has a preference for Mastercard this year due to the fact it has less exposure to the US, more leverage to APAC, and a path higher for forward estimates.

Mastercard was upgraded to Overweight from Sector Weight at KeyBanc last week, with analyst Josh Beck assigning the stock a $425 price target.

The analyst said in a research note that his previous travel-related dislocation concerns have faded and that new flows beyond consumer cards are improving the company's diversification and growth durability. Beck believes new payment flows should extend the growth runway at Visa and Mastercard.