Is Mastercard Stock A Buy Or Hold During The Dip?
(Preview) Company Update (MA US) (Buy)
Summary
Mastercard stock fell 3.5% on Monday, and is now down 16.1% from its July peak and down 5.6% year-to-date, an opportunity in our view.
Share price weakness is due to concerns about Amazon's dispute with Visa, Fintech disintermediation and the new Omicron variant.
We believe these concerns are unfounded. For example, Fintech companies offering Buy Now Pay Later are facing more pressures.
Mastercard announced new 3-year targets in November, including an EPS CAGR in the low 20s, supporting our investment case.
With shares at $337.02, we expect a total return of 76% (20.6% annualized) by 2024 year-end, in just over 3 years. Buy.
Introduction
We review our Mastercard International (NYSE:MA) investment case after MA stock started the week by falling 3.5% on Monday (December 20). At $337.02, MA's share price is down 16.1% from its July peak and down 5.6% year-to-date.
We initiated our Buy rating on Mastercard in April 2019. Even with its recent dip, MA stock has gained 45% (including dividen…