Goldman Maintains Buy On Mastercard (MA)

Goldman Sachs is maintaining its $250 price target and Buy rating on Mastercard MA, after the company hosted an analyst/investor meeting. In the research note, Goldman writes, "Following today's analyst/investor meeting and management's updated long-term targets through 2013, we are raising our calendar year 2010-2012 EPS estimates to $13.45/$16.09/$18.79 from $13.42/$15.80/$18.33. Our estimate changes reflect a slightly higher revenue growth, lower tax rate, and share buyback assumption; offset by a lower margin expansion ramp (now assuming closer to 150 bp of expansion vs. previous 250 bp of annual expansion) although our model continues to reflect operating margins in excess of 50% through the forecasted period. We retain our 12- month price target of $250, suggesting 19% upside potential." Shares of Mastercard surged yesterday, gaining more than 5% to close at $210.18.