MasterCard "buy," target price reduced

14.01.08 - Deutsche Securities

NEW YORK, January 14 (newratings.com) - Analysts at Deutsche Bank Securities maintain their "buy" rating on MasterCard (MA). The target price has been reduced from $250 to $200.

In a research note published on January 11, the analysts mention that the company is likely to be able to achieve the EPS estimates due to its impressive pricing power and highly efficient cost management. MasterCard is also likely to aggressively repurchase shares going forward by using its robust balance sheet, the analysts say. The valuation of MasterCard?s stock is expected to be under pressure in the near term due to the recent profit warning issued by the company?s peer, AXP, and adverse investor sentiment in the broader market, Deutsche Bank Securities adds.