Visa and Mastercard Set to Report Earnings on January 29, Analysts Remain Optimistic
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Stable Consumer Spending: JP Morgan analyst Tien-tsin Huang notes that despite a slight slowdown in consumer spending in Q4, the domestic consumer remains healthy, indicating a solid economic foundation that could positively impact Visa and Mastercard's performance.
- Limited CCCA Impact: Although discussions around the Credit Card Competition Act (CCCA) have sparked cautious sentiment, Huang believes its long-term economic impact on Visa and Mastercard is manageable and unlikely to gain substantial support, alleviating market concerns over policy risks.
- Earnings Expectations: Huang estimates Mastercard's Q4 revenue at $8.72 billion, slightly below the consensus of $8.78 billion, with an EPS of $4.20, demonstrating the company's resilience amid foreign exchange revisions.
- Optimistic Visa Outlook: For fiscal 2026, Huang projects Visa's revenue at $44.76 billion, slightly above market expectations, with an EPS of $12.87, reflecting analyst confidence in the company's growth potential, particularly driven by pricing in tokenization services.
Analyst Views on MA
Wall Street analysts forecast MA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MA is 684.13 USD with a low forecast of 525.00 USD and a high forecast of 1088 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
20 Buy
4 Hold
0 Sell
Strong Buy
Current: 532.860
Low
525.00
Averages
684.13
High
1088
Current: 532.860
Low
525.00
Averages
684.13
High
1088
About MA
Mastercard Incorporated is a technology company in the global payments industry. The Company connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide by enabling electronic payments and making those payment transactions secure, simple, smart and accessible. It provides a range of payment solutions and services using its brands, including Mastercard, Maestro and Cirrus. It operates a payments network that provides choice and flexibility for consumers, merchants and its customers. Through its proprietary global payments network, it switches (authorizes, clears and settles) payment transactions. Its additional payments capabilities include automated clearing house (ACH) transactions (both batch and real-time account-based payments). It offers security solutions, consumer acquisition and engagement, business and market insights, gateway, processing and open banking, among other services and solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
