The good times for
shareholders won’t end anytime soon, according to Wedbush Securities.
The back story. Visa stock (ticker: V) is up 29% in 2019, while Mastercard (MA) has risen 39%.
Join Barron’s Live for ‘ETFs in Focus’—Part 3
How are advisors using ETFs to reach their clients’ investment goals? Join us and J.P. Morgan’s Byron Lake for a live call on Monday June 17. Register here.
Last month, Barron’s suggested the two credit card networks had long-term staying power in the payment industry and that both will benefit from opportunities to expand in business-to-business payments and contactless cards.
What’s new. Wedbush Securities analyst Moshe Katri on Thursday reiterated his Outperform ratings for Visa and Mastercard, citing the companies’ increasing opportunities to generate profits in new areas.
“We expect results to benefit from strong secular growth tailwinds (share gains for electronic payments away from cash and checks), as well as from accelerated, ongoing monetization efforts,” he wrote. “These gains will likely be augmented by ongoing efforts to target other, relatively under-penetrated alternative payments markets, including B2B.”
Visa and Mastercard shares fell slightly to $170.42 and $262.71, respectively, on Thursday. The
was 0.2% higher.
The analyst said the trend to electronic payments will continue as 40% of U.S. and 60% of international transactions are still conducted using cash and checks.
Looking ahead. Katri raised his price target for Visa to $187 from $170. He increased his forecast for Mastercard to $287 from $261.
Write to Tae Kim at firstname.lastname@example.org