Oppenheimer Releases a Buy Rating on Mastercard

By Jason Carr

In a report released yesterday, Glenn Greene from Oppenheimer reiterated a Buy rating on Mastercard (NYSE: MA), with a price target of $120. The company’s shares closed yesterday at $106.33, close to its 52-week high of $111.07.

Greene observed:

“Mastercard delivered solid 4Q16 results, with 10% year/year currency-neutral revenue growth and EPS of $0.86 (vs. our/Street’s $0.84/0.85 estimates). Notably, MA provided its FY17 outlook, calling for low-double-digit constant-currency revenue growth (with 2pts of FX headwinds) and mid-single-digit reported operating expense growth. Accordingly, we estimate ~17% CC EPS growth in FY17, consistent with the company’s FY16-18 intermediate-term guide (which was unchanged despite upside FY16 EPS growth). January volumes appear relatively healthy, despite US volume deceleration due to the USAA roll-off. We are encouraged by recent strong revenue growth and believe the company’s longer term growth trajectory remains intact. We view shares, trading at 21x our CY18E, as attractive.”

According to TipRanks.com, Greene is a top 25 analyst with an average return of 17.9% and a 79.0% success rate. Greene covers the Technology sector, focusing on stocks such as Black Knight Financial Services, Automatic Data Processing, and Jack Henry & Associates.

Mastercard has an analyst consensus of Strong Buy, with a price target consensus of $121.

The company has a one year high of $111.07 and a one year low of $78.52. Currently, Mastercard has an average volume of 3.75M.

Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is negative on the stock. Last month, Mastercard Foundation, a Major Shareholder at MA sold 205,035 shares for a total of $22,462,268.

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