Mastercard Inc's Outlook for Consumer Spending Draws Analyst Attention

By Don Francis, Editor
July 30, 2023 6:38 AM UTC
Mastercard Inc's Outlook for Consumer Spending Draws Analyst Attention

Wells Fargo's Donald Fandetti raised their price target on Mastercard Inc (NYSE: MA) by 3.53% from $425.00 to $440.00 on 2023/07/28. The analyst maintained their Strong Buy rating on the stock.

Post Mastercard's Q2 2023 earnings report, released on 2023/07/27, Fandetti focused on management's outlook. Management struck a conservative tone when forecasting consumer spending, the analyst said, particularly for travel. "Their view is that management's guidance was overly-conservative," Fandetti stated.

Following Fandetti's assessment, other analysts also updated their ratings on Mastercard Inc on July 28, 2023. Baird's David Koning raised their price target by 3.45% and maintained their Buy rating on the stock. BMO Capital's James Fotheringham raised their price target by 5.40% and maintained their Buy rating on the stock. Credit Suisse's Moshe Orenbuch raised their price target by 7.50% and maintained their Buy rating on the stock.

According to data, 71.43% of top-rated analysts currently rate Mastercard Inc as a Strong Buy, while 28.57% are calling the stock a Buy. No analysts see it as a Hold, and none recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that Mastercard Inc's upcoming year will deliver earnings per share (EPS) of $12.75. This would represent a 19.07% increase on a year-over-year basis, if the analysts' predictions prove accurate.

Looking at Mastercard Inc's stock performance, it has seen significant growth since the last quarterly report. The stock price is up 63.31% during this period. On a year-over-year basis, the stock is up 14.92%. Notably, Mastercard Inc has outpaced the S&P 500, which has seen an increase of 13.88% during the same period.

Wells Fargo analyst Donald Fandetti is highly regarded in the financial industry, ranking in the top 11% out of 4,285 Wall Street analysts, according to WallStreetZen. Fandetti specializes in the Real Estate and Financial Services sectors and has an average return of 9.13% with a 61.33% win rate.

Mastercard Inc, founded in 1966, provides transaction processing and other payment-related products and services in the U.S. and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, businesses, governments, and other organizations. These include programs that enable issuers to provide consumers with credit to defer payments. Mastercard Inc is headquartered in Purchase, NY.

Many investors find analysts' recommendations and price targets to be useful data points. However, different investors have different priorities and risk profiles. All investors should conduct their own investment due diligence before buying a stock.

What is the average price target for Mastercard?

WallStreetZen tracks the performance of nearly 4,000 Wall Street analysts, whom we rank by average returns, frequency, and win-rate (backtested over multiple years).

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