Oppenheimer Attracted To MasterCard & Intuit Inc.

Oppenheiemr is highly attracted to MasterCard's MA powerful brand, its vast global acceptance network, and its strong business model. It believes the company is well positioned to benefit from the long-term secular shift from paper to plastic and growing consumer consumption. Benefiting from the company's strong presence in Europe, international opportunities appear abundant. MA does not issue cards or extend credit and it has one of the most attractive business models under our coverage. Oppenheimer anticipates Intuit INTU will deliver at least mid-teens EPS growth, driven by continued double-digit revenue growth in its core TurboTax business and strong revenue/customer lifetime growth via QuickBooks/Small Business cross-selling and the online migration to a monthly revenue stream. The operating margin is likely to continue to expand beyond 30% on leverage and improved efficiencies, while robust free cash flow is likely to remain in excess of 20% of revenue. MA closed Monday at $242.93 INTU closed Monday at $48.23