CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $550, up $85, values shares at 32.3x our 2025 EPS estimate, discounted to MA’s five-year historical average of 37.8x to reflect the higher rate environment and slowing U.S. payment volumes. We lower our FY 2024 EPS estimate to $14.79 from $14.96 and start FY 2025’s at $17.01. MA’s diversification was on full display this quarter as a slowdown in the U.S. (gross dollar volume +4%) was met with continued strength in international markets (+13%). Additionally, strong travel trends showed little signs of normalizing with 18% growth in cross-border volume recorded in Q4. Furthermore, value-added services and solutions saw growth accelerate to 17% (14% in Q3) and we expect momentum to continue into 2024, given an ever-increasing demand for MA’s data analytics and fraud solutions. Importantly, MA is well positioned for market share gains and the formal approval of MA’s joint venture in China should allow for an increased presence in the world’s second largest economy.