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Investing.com - Loop Capital initiated coverage on Mastercard Inc. (NYSE:MA) with a Buy rating and set a price target of $631.00.
Loop Capital analyst Dominick Gabriele cited significant growth opportunities for the company including penetrating new geographies, value-added services and solutions, agentic transactions, international cash-to-card conversion, and cross-border volumes. The stock currently trades at $494, down 13% year-to-date and roughly 18% below its 52-week high of $601.77, creating what analysts view as an attractive entry point.
The firm expects Mastercard’s net revenue growth to exceed payment processors through multiple avenues to generate new transactions, including market share wins. Loop Capital’s 2026 fiscal year-end and 2027 fiscal year adjusted earnings per share expectations are above consensus. The company delivered 16% revenue growth over the last twelve months, with analysts forecasting earnings of $19.48 per share for fiscal 2026. According to InvestingPro analysis, Mastercard appears undervalued at current levels based on its Fair Value assessment, while the stock maintains a Strong Buy consensus among Wall Street analysts.
The analyst stated the stock is oversold due to investor concerns regarding stablecoin penetration, slowing payment industry revenue growth, artificial intelligence, and regulation that is unlikely to materialize. Loop Capital views agentic commerce as positive for card networks while Mastercard continues building capabilities to position itself at the center of various stablecoin payment transactions.
The firm believes Mastercard’s diverse business model, which is agnostic to where consumers spend within retail or services, positions the company to maintain volume and earnings per share growth even if travel spending has been impacted in the U.S. and Middle East near term. Loop Capital called the valuation compelling given adjusted earnings per share growth of approximately 15%.
In other recent news, Mastercard is reportedly planning to sell its real-time payments unit, which it acquired from Denmark’s Nets Group in 2019 for $3.2 billion. This move is expected to unwind Mastercard’s largest takeover deal, with investment bankers leading the sale process. Meanwhile, BNP Paribas Exane upgraded Mastercard’s stock rating to Outperform from Neutral, setting a price target of $600. This upgrade follows a decline in payment services stocks, which have seen a 20% decrease year-to-date.
Additionally, Evercore ISI maintained an In Line rating on Mastercard, highlighting the company’s acquisition of BVNK, a stablecoin payments orchestration layer. This acquisition is set to enhance Mastercard’s capabilities in the cryptocurrency ecosystem. TD Cowen also reiterated a Buy rating on Mastercard, with a price target of $671, emphasizing the complementary nature of stablecoins and traditional payment networks. In other industry-related news, RBC Capital noted the potential impact of the Iran conflict on fintech companies, particularly Shift4 Payments and Global Payments, due to their exposure to Middle Eastern markets.
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