MasterCard: William Blair Presents Key Points From Investor Day; Sees High Visibility To Strong LT Growth


In a research report published today, William Blair analyst Robert Napoli maintained an Outperform rating on MasterCard Incorporated (NYSE:MA), following the company’s analyst day, which was held yesterday at the company’s “technology center” in St. Louis. No price target was provided.

Napoli noted, “We came away from MasterCard’s investor day with greater appreciation of the MasterCard network, its strong innovation, and the company’s long-term growth prospects; our estimates remain unchanged and we reiterate our Outperform rating. In addition to its strong business model, MasterCard is positioned to benefit from strong secular tailwinds that include: growth in personal consumption expenditures, the secular shift toward electronic forms of payments, and growth from strategic investments and share gains. As a reminder, 85% of global transactions remain in paper form. The company generates strong free cash flow and has returned $10 billion to shareholders since 2007. We anticipate modest multiple expansion from current levels, but anticipate 15%-20% EPS growth in coming years; shares trade at a 12.3-times multiple of 2015 EVto- EBITDA.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Robert Napoli has a total average return of 29.2% and a 80.0% success rate. Napoli is ranked #531 out of 3303 analysts.

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