Mastercard Incorporated Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Mastercard Incorporated (MA).
Give me a comprehensive price target analysis for Mastercard Incorporated (MA).
I have successfully plotted the support/resistance levels at $500 (low target), $650 (median target), and $690 (high target), extending 30 days into the future.
Executive Summary
Mastercard (MA) exhibits a robust financial profile with strong margins, steady earnings growth, and supportive technical indicators. The stock's current price of approximately $592 positions it near the median analyst price target of $650, indicating moderate upside potential. The long-term outlook remains favorable, with key resistance at $690 and support at $500. The technical momentum, as indicated by the RSI and MACD, supports a continued upward trend.
Fundamental Analysis
| Metric | Value |
|---|---|
| P/E (Trailing) | 39.94 |
| P/E (Forward) | 36.14 |
| Market Cap | $535 billion |
| Price-to-Book | 68.29 |
| Return on Equity | 1.77% |
| Profit Margins | 44.93% |
| Total Cash | ~$9.37 billion |
| Total Debt | ~$18.97 billion |
| Debt to Equity | 241 |
| Dividend Yield | 0.51% |
| Beta | 1.029 |
MA's valuation metrics suggest a premium but are justified by its strong margins and growth prospects. The low debt levels relative to cash bolster financial health, supporting sustainable dividends.
Earnings Analysis
| Aspect | Insights |
|---|---|
| Recent Performance | Consistent net income (~$3.28B - $3.34B), slight quarterly fluctuations. |
| EPS Trend | Steady EPS of about $4.32 (current quarter), with a positive trend over the past year. |
| EPS Revisions | Consensus revisions lean towards upgrades (more up revisions than down), indicating analyst confidence. |
| Earnings Quality | Revenue growth is steady, margins are high, and EBITDA remains robust, underpinning earnings sustainability. |
Technical Analysis
| Indicator | Insights |
|---|---|
| Price Action | Currently near the 50-day MA (~$542.80), signaling a bullish tendency. |
| Moving Average | The recent price movement above the MA suggests positive momentum. |
| RSI (14) | 75.6, indicating overbought conditions but could sustain further gains. |
| MACD | Bullish crossover observed; MACD remains above the signal line, supporting upward momentum. |
Analyst Consensus & Price Targets
| Metric | Value |
|---|---|
| Current Price | $591.92 |
| Target High | $690 |
| Target Median | $650 |
| Target Low | $500 |
| Number of Analysts | 33 |
Majority of analysts see a potential for appreciation towards the $650-$690 zone, with support around $500.
Price Target Analysis
-
Short-Term (3 months):
Target near $650, driven by technical momentum and earnings stability. Key catalysts include sustained revenue growth and positive sentiment. -
Mid-Term (12 months):
Price could approach the $690 resistance as fundamentals support continued expansion. Growth in digital payments and global expansion could be key drivers. -
Long-Term (3+ years):
Potential to surpass $690 if Mastercard maintains its competitive edge, drives innovation in payments, and benefits from global digital payment trends.
Key Risks & Opportunities
| Risks | Opportunities |
|---|---|
| Rising debt levels | Expansion into emerging markets |
| Regulatory environment | Innovation in digital payments and fintech |
| Macro-economic slowdown | Strong brand, diversified revenue streams |
Investment Recommendation
Hold with a medium- to long-term horizon. The stock's risk-reward setup is favorable, with significant upside potential if targets are realized and sustained growth is maintained. Expectation: ~10-15% annualized return over the next 12-24 months, contingent on overall market conditions.
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