In a report released today, Bryan Bergin from TD Cowen reiterated a Buy rating on Mastercard, with a price target of $654.00.
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Bryan Bergin has given his Buy rating due to a combination of factors, primarily Mastercard’s strong third-quarter performance and its strategic positioning for future growth. The company demonstrated resilience in consumer spending, which remained consistent across different income levels, despite broader economic challenges. Mastercard’s execution in its Value-Added Services and Solutions (VASS) segment, which saw significant growth, underscores its capability to navigate sectoral shocks.
Bergin also highlights Mastercard’s strategic initiatives, such as the penetration in underexplored verticals like transit and remittance solutions, and the transition to open-loop systems, which have shown robust growth. Looking forward to fiscal year 2026, Mastercard is expected to benefit from reduced operating expense growth and a more favorable tax environment, supporting its return to mid-teens earnings per share growth. These factors collectively justify the premium valuation and reinforce the Buy rating.