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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Mastercard Incorporated
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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Mastercard Incorporated
Jul 31, 2025 1:03 PM

03:40 PM EDT, 07/31/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $40 to $730, valuing shares at 38.3x our 2026 EPS estimate, a modest premium to MA's five-year historical average of 37.1x, given momentum in value-added services. We maintain our FY 25 EPS estimate at $16.34 and keep FY 26's at $19.05. Q2 results were encouraging, with tariff concerns having minimal impact on performance. Management also raised its adj. revenue growth guidance from the high end of low double digits to low teens. Despite this positive momentum, MA shares trade at nearly a 10% discount to historical forward P/E multiples. We believe investor concerns about stablecoins potentially disrupting the payments industry are weighing on the stock's valuation. However, similar to Visa, we see MA as well positioned due to its highly innovative management team. Rather than avoiding the stablecoin trend, we expect MA to actively engage with this technology and capitalize on opportunities in emerging markets and cross-border payments.

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