Mastercard’s Strong Financial Performance and Strategic Expansion Justify Buy Rating

Analyst Iris Gao of DBS maintained a Buy rating on Mastercard (MA – Research Report), with a price target of $650.00.

Iris Gao has given her Buy rating due to a combination of factors, including Mastercard’s impressive financial performance and strategic positioning in the market. The company’s adjusted net income for the first quarter of 2025 exceeded expectations, driven by robust cross-border volume growth and an 18% increase in revenue from value-added services and solutions. Mastercard’s forecast for low double-digit revenue growth for the year, along with its expansion in the cryptocurrency and global remittance sectors, further supports this positive outlook.
Additionally, Mastercard’s strategic shift beyond traditional card payments into high-growth areas such as peer-to-peer payments and remittances positions it well for future expansion. The global trend towards digital payments, coupled with Mastercard’s strong competitive position and high net margins, reinforces its potential for sustained growth. The company’s high exposure to international payment volumes and its ability to leverage network effects contribute to its strong market position, justifying the Buy recommendation with a target price increase to USD 650.

According to TipRanks, Gao is a 4-star analyst with an average return of 15.5% and an 81.82% success rate. Gao covers the Financial sector, focusing on stocks such as American Express, PICC Property & Casualty Co, and Mastercard.

In another report released on May 5, Citi also maintained a Buy rating on the stock with a $652.00 price target.