Mastercard initiated with "sell"

06.07.06 - Stifel Nicolaus

NEW YORK, July 6 (newratings.com) - Analysts at Stifel Nicolaus & Company initiate coverage of Mastercard Incorporated (MA) with a "sell" rating.

In a research note published this morning, the analysts mention that the combination of increasing strategic risks and legal expenses are expected to lead to a decline in the company's cash flows going ahead. Mastercard is also facing intensifying competition from Amex and Discover and the ACH-based payment systems at the merchant, the analysts say. Apart from facing consolidation risks, the company has also been losing market share in spending, mainly to Visa, Stifel Nicolaus & Company adds.