Bank of America Securities analyst Mihir Bhatia maintained a Hold rating on Mastercard yesterday and set a price target of $616.00.
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Mihir Bhatia’s rating is based on Mastercard’s strong second-quarter performance, which exceeded expectations due to robust revenue from value-added services, particularly influenced by foreign exchange volatility. Despite these positive results, Bhatia maintains a Hold rating due to concerns about Mastercard’s top-line growth algorithm and the potential risks associated with litigation and regulatory challenges.
Bhatia notes that while Mastercard’s business model remains strong and July metrics show stability, there are signs of a slowdown in certain areas, such as cross-border travel. Additionally, although Mastercard has raised its guidance for future revenue growth, the anticipated increase in operating expenses and the impact of acquisitions contribute to the cautious outlook. Therefore, Bhatia’s rating reflects a balanced view of Mastercard’s current strengths and potential risks.
In another report released on July 28, Monness also reiterated a Hold rating on the stock with a $500.00 price target.
MA’s price has also changed slightly for the past six months – from $555.430 to $566.470, which is a 1.99% increase.