Mastercard Analysts Increase Their Forecasts Following Upbeat Results

Mastercard Inc MA reported better-than-expected second-quarter financial results on Wednesday.

Mastercard reported fiscal second-quarter net revenues of $7.0 billion, up 10% year over year and 13% year over year on a neutral currency basis, beating the analyst consensus estimate of $6.85 billion. Adjusted EPS rose 24% year over year to $3.59, exceeding the analyst consensus estimate of $3.51.

CEO Michael Miebach said, “This was supported by continued healthy consumer spending, robust cross-border volume growth of 17%, and demand for our value-added services and solutions where net revenue increased 18%, or 19% on a currency-neutral basis."

For the third quarter, Mastercard expects net revenue growth in the low-double-digit versus the $6.85 billion analyst consensus estimate. For fiscal 2024, Mastercard projects net revenue growth of low-double-digits (prior low-end of low-double-digits) versus the $27.84 billion analyst consensus estimate.

Mastercard shares fell 0.6% to trade at $461.04 on Thursday.

These analysts made changes to their price targets on Mastercard following earnings announcement.

• Susquehanna analyst James Friedman maintained Mastercard with a Positive rating, while raising the price target from $535 to $540.
• RBC Capital analyst Daniel Perlin maintained the stock with an Outperform and boosted the price target from $500 to $526.
• BMO Capital analyst Rufus Hone maintained Mastercard with an Outperform and raised the price target from $510 to $520.
• Keybanc analyst Alex Markgraff maintained Mastercard with an Overweight rating, while boosting the price target from $490 to $515.

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