MasterCard "outperform"

01.06.06 - Morgan Keegan

NEW YORK, June 1 (newratings.com) - Analysts at Morgan Keegan maintain their "outperform" rating on MasterCard Inc (MA).

In a research note published yesterday, the analysts mention that the company is likely to opt for a settlement in the current litigation rather than go to trial and collect damages in order to keep its pricing opaque and to protect sensitive customer information. The merchants are likely to opt for a settlement for only $3.0-$3.5 billion in order to settle the case in the near term, the analysts say. Excluding the litigation risk, the current valuation of MasterCard?s stock is attractive in view of the company?s robust global fundamentals in the charge card market and strong brand position, Morgan Keegan adds.