Goldman Sachs Finds Mastercard Shining In 2024 Despite Weak Industry Outlook
Portfolio Pulse from Lekha Gupta
Goldman Sachs analyst has increased the price target for Mastercard Inc (NYSE:MA) from $433 to $482 while maintaining a Buy rating. Despite a mixed outlook for credit card spending and expected deceleration in card volume growth, the analyst predicts consistent spending trends in 2024 similar to H2 FY23. Uncertainty remains around average ticket sizes, which have declined despite inflation. U.S. volume growth is projected at ~8% for 2024, with intermediate-term growth estimated between 6%-8% domestically and ~8%-10% globally. The analyst anticipates Mastercard to guide to high teens EPS growth for 2024, with an EPS estimate range of $14.14-$14.20, compared to a consensus of $14.23 for FY24. Mastercard shares were trading slightly lower at the time of the report.
January 11, 2024 | 8:44 pm
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POSITIVE IMPACT
Goldman Sachs has raised the price target for Mastercard to $482 and maintained a Buy rating, expecting consistent spending trends and solid volume growth in 2024.
The increase in price target by a reputable analyst from Goldman Sachs, coupled with a maintained Buy rating, is a strong positive signal for Mastercard. The projection of consistent spending trends and volume growth, despite industry headwinds, suggests confidence in the company's performance. This could lead to increased investor confidence and a potential short-term rise in the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100