Mastercard: Double-Digit Growth In Q4 & Likely Beyond
(Preview) Company Update (MA US) (Buy)
Summary
Mastercard Incorporated shares are currently down 2% after Q4 results, and are just about 8% higher than the level at the start of 2021.
Excluding currency, revenues, EBIT and EPS all grew by high-teens; including currency effects, growth was still in the solid double-digits.
Even with currency headwinds and the exit from Russia, Mastercard has achieved an EPS CAGR of more than 11% in 2019-22.
Consumer spending continues to be strong, and management outlook implies a "low teens" EBIT growth in 2023.
With shares at $375.17, we expect an exit price of $571 and a total return of 55% (16.2% annualized) by 2025year-end. Buy.
Introduction
Mastercard Incorporated reported Q4 2022 results this morning (January 26); shares are down 1.9% as of 3 pm EST.
We initiated our Buy rating on Mastercard in April 2019. MA shares have gained 62% (including dividends) since then, but the current share price is only 8% higher than at the start of 2021, even after an 8% rebound year-to-date.
Excluding currenc…