Monness downgrades MasterCard on Neutral on ‘rich’ valuation

Monness Crespi analyst Gus Gala downgraded MasterCard (MA) to Neutral from Buy without a price target The firm views the stock’s valuation as “rich” and highlights MasterCard’s sensitivity to volume and transaction growth. Monness says uncertain expectations make it circumspect the company’s “quality halo can hold for much longer.” In a softer macro environment, MasterCard’s new flows will not grow as much considering the composition of its portfolio in commercial and potential for lower cost alternatives, the analyst tells investors in a research note.