Morgan Stanley reiterates Overweight rating on Mastercard stock at $639

Investing.com - Morgan Stanley (NYSE:MS) has reiterated an Overweight rating and $639.00 price target on Mastercard (NYSE:MA), a $502 billion market cap payments giant with 13% revenue growth over the last twelve months, following the company’s information session on July 14. According to InvestingPro data, analyst targets for the stock range from $500 to $690.

The firm noted that Mastercard management’s commentary during the session reinforced its view that the payment giant can benefit from agentic commerce and stablecoin adoption with limited risk to its core card business. The company’s strong financial position is evident in its GOOD overall health score from InvestingPro, which offers 8 additional key insights about Mastercard’s performance and outlook.

Morgan Stanley highlighted Mastercard’s ability to provide scale, acceptance, authentication, and security solutions to support these emerging payment technologies while facing minimal cannibalization risk to traditional card payments.

The session, led by Chief Product Officer Jorn Lambert and Chief Commercial Payments Officer Raj Seshadri, focused on Mastercard’s involvement and strategy with agentic commerce and stablecoins.

Morgan Stanley emphasized that these new payment services represent an incremental opportunity for Mastercard, with disruption to existing domestic person-to-merchant card payments likely to remain low.

In other recent news, Mastercard has been in the spotlight for several notable developments. UBS has reiterated its Buy rating on Mastercard, maintaining a price target of $670, following a virtual information session on agentic commerce and stablecoins. The session highlighted Mastercard’s strategic moves into new payment technologies, including the launch of Mastercard Agent Pay and exploring stablecoin opportunities for payments. Additionally, Mastercard faces legal challenges as the London Competition Appeal Tribunal ruled that its default multilateral interchange fees violate European competition law, a decision that Mastercard plans to appeal. In a separate move, Argentine fintech startup tapi has acquired Mastercard’s Arcus unit in Mexico, aiming to expand its presence in Latin America’s second-largest economy. Meanwhile, Mastercard stockholders approved all management proposals at the annual meeting, including the election of directors and executive compensation. The company also ratified PricewaterhouseCoopers as its independent registered public accounting firm for 2025. These recent developments underscore Mastercard’s ongoing efforts to navigate both expansion opportunities and legal hurdles.

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