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 $465 (down $15) values shares at 31.1x our 2024 EPS estimate, discounted to MA’s five-year historical average of 37.6x to reflect the higher for longer rate environment. We raise our FY 2023 EPS estimate to $12.39 from $12.31 and increase FY 2024’s to $14.96 from $14.89. Q3 revenues were $6.53B (+14%, or +11% currency-neutral), in line with the consensus. Adjusted EPS was $3.39, which topped expectations by $0.18. On the positive side, gross dollar volume growth accelerated to 11% as weakness in the United States (+5%) was outweighed by strength in Latin America (+25%) and Europe (+22%). Additionally, cross-border volume (+21%) continued its momentum and sits a hefty 71% above pre-pandemic levels. However, spending trends have slowed in October and management indicated a possible revenue slowdown in Q4. Still, we view shares as worth buying given our expectations for margin expansion, continued strong travel trends, and MA’s ability to weather rapidly changing consumer preferences.