What's Going On With Mastercard And Visa Shares Today

• Mastercard Inc (NYSE: MA) and Visa Inc (NYSE: V) shares are trading lower on Tuesday as Mizuho flagged their declining U.S. personal consumption expenditure share.

• Mizuho analyst Dan Dolev maintains Mastercard with a Buy, lowering the price target from $405 to $400.

• Dolev's analysis suggests that Visa and MA's share of incremental U.S. personal consumption expenditures (PCE) continued to decline in 1Q 2023.

• Visa's share is now trending below its long-term averages, while MA is trending roughly in line.

• Although the rise of cross-border travel is an essential near-term positive catalyst, the share of incremental PCE is a crucial barometer of the long-term moat of businesses.

• The analyst raised his MA 2023 revenue and EPS estimates to $25.3 billion and $12.28, up from $25.1 billion and $12.20. His 2024 revenue estimate moves up by ~$100 million, but EPS is now $14.53 vs. $14.93 previously, primarily due to lower adjusted operating income, as he was too aggressive in his prior model.

• Dolev raised his V FY23 and FY24 revenue estimates to $32.4 billion and $35.9 billion, up from $32.0 billion and $35.5 billion, respectively. Similarly, he raised his FY23-24 EPS estimates to $8.56 and $9.69, up from the prior $8.40 and $9.65.

• MA's price target reflects a slight premium to peer V as MA has less exposure to debit (which faces more medium-term challenges than credit) and less reliance on the U.S., where card penetration is much higher than in many international markets.

• Price Actions: MA shares traded lower by 0.94% at $376.29 on the last check Tuesday. V shares traded lower by 2.21% at $227.38.

• Photo via Wikimedia Commons

Latest Ratings for MA

Date	Firm	Action	From	To
Jan 2022	Morgan Stanley	Maintains		Overweight
Jan 2022	Raymond James	Maintains		Outperform
Jan 2022	Raymond James	Maintains		Outperform

View More Analyst Ratings for MA

View the Latest Analyst Ratings

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This article What's Going On With Mastercard And Visa Shares Today originally appeared on Benzinga.com

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