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JPMorgan Reiterates “Overweight” Rating for MasterCard (MA)

Analysts at JPMorgan Chase on Friday reiterated their "Overweight" rating on Credit card issuer MasterCard Incorporated ( MA ).

The firm also set a $380 price target MA shares, suggesting a 9% upside to the stock's Thursday closing price of $347.94.

A JPMorgan analyst commented, "Payment innovation and the robust global secular growth opportunity (85% of transactions are still completed with cash/check) were the key themes at MasterCard's annual Investment Community Meeting yesterday. Highlights included a positive volume trend update (most metrics flat to up sequentially), an allusion to another U.S. signature debit win from Visa, updates on several payment innovations/technologies and the company's international initiatives. Management reiterated their 2011-2013 performance objectives of 12-14% CAGR revenue growth (constant currency), at least 50% operating margins, and 20+% EPS growth. With shares trading at a discount to growth at 16x 2012e EPS, we reiterate our Overweight rating."

MasterCard shares were unchanged in premarket trading Friday.

The Bottom Line

Shares of Mastercard ( MA ) have a .17% dividend yield, based on last night's closing stock price of $347.94. The stock has technical support in the $320-$340 price area. If the stock can firm up, we see overhead resistance around the all-time high levels of $349-$350 a share.

MasterCard Incorporated ( MA ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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