Topeka Initiates Hold Ratings On MasterCard And Visa

John Williams of Topeka Capital Markets initiated coverage of MasterCard MA with a Hold rating and $87 price target on Wednesday. The analyst also initiated coverage of Visa V with a Hold rating and $261 price target. MasterCard: Fully Valued Williams notes that MasterCard's model is “quite defensible,” driven by secular trends and a high operating leverage. However, the analyst sees a slowing consumer spending in some markets, foreign exchange headwinds and a full valuation limiting near-term gains in shares. Williams expects MasterCard's annual revenue growth to be in the low-teens percentage and high-teens earnings per share growth over the next three years. Visa: Industry Leader Visa is the industry leader in terms of footprint and market share, according to Williams. The company offers an “attractive” combination of growth, defense, high incremental margins and secular tailwinds. Like MasterCard, the analyst expects Visa to see revenue growth in the low teens over the next three years while earnings per share is also expected to be in the high-teens during the same time period.