Visa, Mastercard Have $255T Opportunity, Analyst Says: Generative AI 'Could Drive Upside To Fundamentals'
Portfolio Pulse from Surbhi Jain
Piper Sandler initiated coverage on Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) with Overweight ratings, highlighting their strong positions in the global payments landscape and potential for growth driven by generative AI and extensive FinTech ecosystem partnerships. Visa and Mastercard are expected to benefit from significant tech investments, including in generative AI, with a potential opportunity of over $255 trillion in the consumer payments sector. Mastercard is expected to see 11.0% revenue growth this year and 12.7%+ by FY25, while Visa is expected to drive revenue growth of 10.7%.
May 13, 2024 | 4:19 pm
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POSITIVE IMPACT
Mastercard Inc receives an Overweight rating from Piper Sandler with a $531 price target, highlighting its potential for sustained growth through its Payment Network and Value-added Services. Expected revenue growth of 11.0% this year and 12.7%+ by FY25 indicates strong performance.
The positive outlook and high price target for Mastercard are based on its revenue growth prospects and strategic position in the payment industry. The focus on expanding its services and solutions portfolio is expected to drive its market performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Visa Inc is rated Overweight by Piper Sandler with a price target of $322, driven by its strong position in digital payments and potential growth from generative AI and FinTech partnerships. Expected revenue growth of 10.7% showcases its robust fundamentals.
The Overweight rating and high price target reflect analyst confidence in Visa's growth trajectory, supported by its strategic investments in technology and partnerships. The expected revenue growth underlines its strong market position and potential for further expansion.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100