MasterCard "buy," target price raised

10.04.08 - UBS

NEW YORK, April 10 (newratings.com) - Analysts at UBS maintain their "buy" rating on MasterCard Inc (MA), while raising their estimates for the company. The target price has been raised from $220 to $275.

In a research note published this morning, the analysts mention that the company?s fundamentals and earnings prospects appear to be on track. MasterCard is expected to witness margin growth going forward on account of cost structure rationalization and the scale of its business, the analysts say. The company?s performance is likely to remain robust going forward on account of MasterCard?s durable and globally-diversified business model, which does not carry consumer credit risks, UBS adds. The EPS estimates for 2009 and 2009 have been raised from $7.10 to $7.47 and from $8.35 to $9.25, respectively.