MasterCard shares dip on concerns over financials
NEW YORK—Shares of MasterCard Inc. declined Wednesday even after a Keefe, Bruyette & Woods analyst reiterated an "Outperform" rating on the stock.
Shares dropped $5.71, or 2.4 percent, to $231.40 in afternoon trading. Shares have traded between $120 and $320.30 in the past 12 months.
Wall Street fled financial stocks Wednesday after troubled mortgage finance company Freddie Mac reported a larger-than-expected quarterly loss, rekindling investor concern about the health of the sector.
Investors have also remained wary of the impact a slowing U.S. economy may have on the credit card issuer, despite the company reporting an adjusted profit above Wall Street's expectations last week.
After meeting with MasterCard Chief Financial Officer Martina Hund-Mejean and Senior Vice President of Investor Relations Barbara Gasper, KBW analyst Sanjay Sakhrani reiterated an "Outperform" rating on the shares, citing expectations for continued strong international growth and the company's ability to weather an economic slowdown in the U.S.
"While MasterCard is not immune to a global slowdown, we believe it is one of few companies that can post solid results in the face of economic weakness and obviously be in a position to post even stronger results on the other end of the cycle," wrote Sakhrani, who has a $363 target price on the stock.
