Morgan Stanley analyst James Faucette maintained a Buy rating on Mastercard (MA – Research Report) today and set a price target of $644.00.
James Faucette has given his Buy rating due to a combination of factors, primarily focusing on Mastercard’s strategic expansion in its Value-Added Services (VAS) segment. This segment, which includes security solutions, now constitutes 37% of the company’s total revenues and is experiencing significant growth. The company’s penetration in the total addressable market remains low, indicating substantial room for expansion.
Mastercard’s recent acquisitions, such as Brighterion, Recorded Future, Ekata, and RiskRecon, have significantly bolstered its capabilities in AI, threat intelligence, digital identity verification, and cybersecurity. These acquisitions enhance Mastercard’s ability to provide comprehensive security solutions, which are crucial in the current digital landscape. The company’s focus on integrating these services across the transaction lifecycle positions it well for future growth, justifying the Buy rating.