Mastercard: A Challenging Year Ahead (Rating Downgrade)

Summary:

  • After turning bullish on the stock a year ago, Mastercard Incorporated has become one of the best-performing companies within its peer group.
  • As sell-side analysts remain extremely optimistic, Mastercard share price upside over the coming year appears limited.
  • Record high margins have played a key role in Mastercard’s performance over the past year, but are unlikely to provide a tailwind in 2024.

Mastercard Credit Card

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Perhaps not surprisingly, Mastercard Incorporated (NYSE:MA) was among the best performing stocks within the electronic payments space over the past year, alongside the usual suspect Visa (NYSE:V) and the unexpected winner – Fiserv (NYSE:FI).

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of FI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Please do your own due diligence and consult with your financial advisor, if you have one, before making any investment decisions. The author is not acting in an investment adviser capacity. The author's opinions expressed herein address only select aspects of potential investment in securities of the companies mentioned and cannot be a substitute for comprehensive investment analysis. The author recommends that potential and existing investors conduct thorough investment research of their own, including detailed review of the companies' SEC filings. Any opinions or estimates constitute the author's best judgment as of the date of publication, and are subject to change without notice.

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