In a report published Monday, Piper Jaffray analyst Jason S. Deleeuw reiterated an Overweight rating on MasterCard MA, but lowered the price target from $91.00 to $88.00.
In the report, Piper Jaffray noted, “We believe MA's 3Q14 results will show solid momentum driven by 1) a strengthening U.S. consumer backdrop and 2) our expectation for continued solid cross-border volume growth. However, we believe growing European FX/macro headwinds limit our upside scenario to 2015 consensus revenue and EPS, so we modestly lower our estimates. While we lower our estimates today for FX/macro headwinds, our view of MA's L-T growth profile is unchanged as ~50%/~85% of U.S./worldwide transactions are still cash and check. We believe mobile payments/devices are accelerating the worldwide secular shift to electronic transactions. Our price target moves from $91 to $88 based on our new estimates and a slightly lower multiple (24.5x vs. 25.0x previously) to account for European FX/macro risks.”
MasterCard closed on Friday at $70.50.
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