Shares of Mastercard Inc (NYSE:MA) declined on Friday, even after the company reported upbeat second-quarter results.
• Mastercard stock is facing resistance. What’s driving MA stock lower?
Here are the key analyst takeaways:
- JPMorgan analyst Tien-tsin Huang reiterated an Overweight rating, while raising the price target from $655 to $720.
- KeyBanc Capital Markets analyst Andrew Schmidt maintained an Overweight rating, while lifting the price target from $670 to $680.
- BofA Securities analyst Matthew O’Neill reaffirmed a Buy rating, while raising the price target from $700 to $735.
Check out other analyst stock ratings.
JPMorgan: Mastercard’s second-quarter results "comfortably beat" estimates on better-than-expected cross-border trends and pricing, Huang said in a note.
The company’s cross-border trends had decelerated in the previous quarter and, while management had indicated an improvement in trends during the second quarter, "we were surprised to see high-yielding cross-border volume recover," he added.
Management attributed the second quarter’s broader upside to a smaller-than-expected impact of the Middle East conflict, which is "an encouraging reminder of Mastercard’s business diversification as other regions and corridors supported growth," the analyst wrote.
He further noted that:
- Mastercard reported earnings 6% higher than Street expectations.
- Organic revenues grew around 12%.
Analyst Huang raised the full-year organic revenue and earnings growth estimates from 11% to 12% and from 15% to 16%, respectively.
KeyBanc Capital Markets: Mastercard reported total net revenue of $9.28 billion and adjusted earnings of $5.04 per share, surpassing consensus estimates of $9.08 billion and $4.77 per share, respectively, Schmidt said.
The company launched Mastercard Agent Pay for Machines in June, with more than 30 corporate partners, which added at least $1 billion-$2 billion in "addressable incremental network revenue under conservative assumptions," he added.
"Management continues to view stablecoins as additive to its network, noting that Mastercard plans to enable OpenUSD across its network once the coin is live later this year," the analyst wrote. The company witnessed strong crypto momentum, with crypto co-brand volume expanding 300% over the past two years, he further stated.
BofA Securities: Mastercard is among "the top tier of payments compounders," as a clean second-quarter beat and tighter 2026 outlook indicate "how steady the earnings engine is," O’Neill said. He highlighted the following:
- Underlying cross-border remains healthy.
- Headwinds from the Middle East conflict are likely to moderate through the second half of the year.
- Agent Pay is currently the sole network proposal that is live to facilitate machine-to-machine payments.
- While OpenUSD is scheduled to go live later this year, management noted the future is beyond stablecoins, with several chains and coins.
MA Price Action: Shares of Mastercard had declined by 1.57% to $568.65 at the time of publication on Friday.
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