11:00 AM EDT, 10/31/2025 (MT Newswires) -- Mastercard ( MA ) is seeing healthy consumer spending and steady cross-border volumes, supported by a resilient macro backdrop and expanding value-added services, Morgan Stanley said in a note Friday following the company's Q3 results.

The brokerage said Mastercard ( MA ) continues to benefit from stable employment and wage trends that are sustaining spending levels, with US volumes up 7% in Q3 and cross-border volumes rising 15%, supported by its diversified exposure.

Its value-added services segment grew 22% in the quarter and now accounts for about 40% of total revenue, outpacing the company's core payment network and becoming a more important growth driver.

Morgan Stanley added that the ongoing Capital One migration is progressing faster than expected and is temporarily weighing on some US metrics but should have minimal long-term revenue impact.

The firm also pointed to emerging opportunities in agentic commerce, saying Mastercard ( MA ) is well-positioned given its recent innovation and investment in the area.

Morgan Stanley reiterated its overweight rating on Mastercard ( MA ) and raised its price target to $665 from $661.

Shares of Mastercard ( MA ) were down 1.4% in recent trading.

Price: 546.04, Change: -7.64, Percent Change: -1.38