Mastercard unveiled a co-branded card in South Korea, Samsung Pay card, in partnership with Samsung Electronics and Samsung Card. The global payment solution provider said that the card was launched on August 31.
The deal provides Mastercard (MA) with a strong customer base, given Samsung Pay’s leading market position in the South Korean digital payment market. Samsung Pay had approximately 19 million users at the end of August. Since Samsung Pay’s launch in 2015, the app has generated accumulated payments of 80 trillion won ($67.5 billion).
On July 30, Mastercard reported better-than-expected 2Q results. The company’s revenues of $3.3 billion surpassed analysts’ expectations of $3.2 billion. Its earnings of $1.36 per share beat Street estimates of $1.15. (See MA stock analysis on TipRanks).
On August 28, Truist Financial analyst Andrew Jeffrey raised the stock’s price target to $415 from $375 and reiterated a Buy rating. Jeffery believes that the stock will make a comeback given its “leading Services strategy, long-term share opportunity, inherent scalability and shareholder-friendly capital allocation.” Notably, PayPal has gained 77.4% year-to-date while Mastercard is up just 12.2%.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 18 Buys versus 5 Holds. The average analyst price target of $353.14 implies upside potential of 5.4% to current levels.