logo
  Join        Login             Stock Quote

Visa (V), Mastercard (MA) Shares Upgraded To 'Neutral' By UBS

 February 21, 2013 03:18 PM
 


(By Balachander) UBS upgraded rating on shares of Visa Inc. (NYSE: V) and Mastercard Inc. (NYSE: MA) to "Neutral" from "Sell".

UBS analyst John Williams said Visa upgrade follows the company's 1QFY13 earnings and its guidance reiteration.

"While (Visa) shares have underperformed YTD (+6.2% vs. the S&P 500 +9.0%), we believe intact long-term guidance, operating leverage, the dividend, capital allocation options (i.e. buybacks), and no exposure to Europe will provide a floor—despite slower global spending growth trends," the analyst wrote.

[Related -Visa (V) Call Options Look For Rebound]

"Our view that slowing global spending growth would weigh on the model and drive modest multiple contraction has not panned out, as we underestimated investors' willingness to pay a premium multiple for the company's consistent earnings growth and L-T visibility," Williams said.

Williams has a price target of $156 on Visa stock.

The analyst said Mastercard shares have modestly underperformed YTD (+4.4% vs. the S&P 500 +9.0%) and he believes intact long-term guidance, operating leverage, a modest dividend, and capital allocation options (i.e., buybacks) will provide a floor—despite slower global spending growth.

Williams has a price target of $519 on Mastercard stock.

Visa shares rose 1.73 percent to trade at $158.11, while MA shares added 1.38 percent to trade at $520.00 on Thursday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageADP: Private-Sector Payrolls Rise 213k In September

Private-sector employment continued to rise at a moderate pace in September, according to this morning’s read on...

article imageSuspicions Over ADP Employment Make-up

he private payroll processor noted that the sixth continuous payroll gain above 200,000 was a “positive read on...

article imageLessons From the Golden Bear

How attractive is gold when it comes to investing over the long read on...

article imagePondering The Slide In US Inflation Expectations

The Treasury market’s inflation forecast via 10-year Notes continues to fall and the US stock market has read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.