Read Barclays' Take On Visa, Mastercard, PayPal Amid Present Macro Environment

  • Barclays analyst sess a modest deceleration in Q1 card-present spending and mixed global online volume growth (both on a 2019 CAGR basis). 
  • Despite the slowdown, it believes that the card spending environment remains healthy, which should be a plus for networks/acquirers/processors. 
  • Based on Visa Inc V intra-quarter filings through Feb 2022 and other macro indicators, Barclays saw the overall global C1Q spend environment remains healthy with a cross-border recovery. But macro, geopolitical concerns remain focused given Ukraine, inflation, rates, and regs. 
  • Barclays had an Overweight rating with a price target of $260 (21.9% upside) on Visa.
  • Amid PayPal Holdings Inc's PYPL strategy shift on new user adds, Barclays thinks investors should be prepared for a harsh result on NNAs, perhaps even negative q/q growth. 
  • This quarter is the toughest prior year comparable and could represent somewhat of a clearing event for the stock. 
  • Barclays had an Overweight rating with a price target of $200 (90.2% upside) on PayPal.
  • Despite a volatile macro backdrop (Ukraine, Inflation, Fuel Prices, Rates, etc.), the leading indicators indicate a generally healthy spending environment in Q1 for Mastercard Inc MA
  • Omicron cases softened early in the quarter, with the Street now waiting to see if a cross-border recovery largely offsets growing macro pressures.
  • Barclays had an Overweight rating with a price target of $420 (18.2% upside) on Mastercard.
  •  Price Action: MA shares traded higher by 1.28% at $359.70 on the last check Thursday.
  • Photo by Republica via Pixabay

Posted In: BriefsData Processing & Outsourced ServicesInformation TechnologyNewsPrice TargetReiterationAnalyst Ratings

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