Wall Street Analysts Just Trimmed Price Targets for These 5 Stocks

02. Mastercard Incorporated (NYSE:MA)

Price Reaction after the Price Target Cut: -3.23 (-0.81%)

On October 9, 2023, JP Morgan analyst Tien-Tsin Huang reaffirmed his optimistic outlook on Mastercard Incorporated (NYSE:MA), maintaining an Overweight rating. Despite this positive stance, Huang adjusted the price target, lowering it from $510 to $496. As of the most recent data, Mastercard Incorporated (NYSE:MA) current market price is $394.78, reflecting a marginal decrease of 0.8%. The decision to retain an Overweight rating suggests that JP Morgan views Mastercard Incorporated (NYSE:MA) as positioned for outperformance relative to the broader market, even with the revised price target.

Baron FinTech Fund made the following comment about Mastercard Incorporated (NYSE:MA) in its second quarter 2023 investor letter:

“We modestly trimmed Visa Inc., Mastercard Incorporated (NYSE:MA), and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.

Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo.”