On Monday, Miuzho analysts provided insights into the potential impact of upcoming tariffs on Canada, Mexico, and China, which have been postponed for one month. According to their bottom-up analysis, payment processing giants Visa (NYSE:V) and Mastercard (NYSE:MA) might experience a modest uptick in business due to the tariffs. Visa could see an estimated 0.20% lift in payment volume, while Mastercard might see a 0.10% increase, despite potential concerns about a slowdown in consumer demand. Mastercard, currently trading near its 52-week high with a market capitalization of $515.4 billion, has demonstrated strong revenue growth of 12.2% in the last twelve months. According to InvestingPro analysis, the company is currently trading above its Fair Value, with a P/E ratio of 40.45.
The analysis also highlighted Toast Inc. (NYSE:TOST), a company specializing in restaurant software, which could benefit significantly from the tariffs with an estimated 0.50% volume increase. Toast’s nearly exclusive focus on the U.S. restaurant industry and its substantial market share positions it well to capitalize on the tariffs. With a volume-based pricing model, any increase in transaction volume is expected to directly contribute to the company’s revenue growth. For deeper insights into payment processors and fintech companies, InvestingPro subscribers can access comprehensive research reports covering 1,400+ US stocks, including detailed financial health scores and expert analysis.
Additionally, the report mentioned other companies that could benefit from the tariff-induced changes. Small and medium-sized business (SMB) acquirers with volume-based pricing models, such as XYZ’s Point of Sale (POS) business and FI’s Clover, are also poised to benefit. These companies are anticipated to see a positive effect on their revenues due to the tariffs, as they typically earn more when consumer spending volumes are higher.
The tariffs, which have been a topic of discussion in trade negotiations, aim to address various economic issues but also have the potential to affect different sectors of the economy. The delay in the implementation of these tariffs provides a temporary reprieve, but businesses are bracing for the changes that will come once they are enacted.
Companies like Visa, Mastercard, Toast, and others with volume-based pricing structures are looking at the tariffs as an opportunity for growth. However, the full impact of these tariffs on consumer spending and the broader economy will only become clear once they are in place.
In other recent news, MasterCard is in the spotlight with several analyst firms adjusting their stock targets. RBC Capital raised the target to $650, citing the company’s strong long-term growth prospects, as reported by analyst Daniel Perlin. UBS also increased its price target to $660, with analyst Tim Chiodo highlighting MasterCard’s robust performance. BMO Capital Markets adjusted the price target upwards to $600, reflecting confidence in the company’s sustained growth, while KeyBanc Capital Markets increased its target to $630, despite adjusting its future revenue and EPS estimates downwards.
In parallel, President Trump has appointed Treasury Secretary Scott Bessent as the acting director of the Consumer Financial Protection Bureau (CFPB), according to TD Cowen analyst Jaret Seiberg. This move could impact credit card companies like MasterCard, as the agency is expected to withdraw its defense of certain rules. However, the long-term implications will depend on Bessent’s choice of deputies and Trump’s eventual nomination for the director’s position. These are the recent developments to keep an eye on for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.