MasterCard China approval could add $1.50 in EPS, says Baird

Baird keeps an Outperform rating on MasterCard (MA) after the company announced that its joint venture entity, Mastercard NUCC Information Technology, received formal approval from the People’s Bank of China and the National Administration of Financial Regulation to begin domestic bankcard clearing activity in China. At 20 basis points of yield, every 5% share of domestic China volume could reflect a $1.5B revenue opportunity, says the firm, which estimates China has $17 trillion in credit/debit issuer volume. If MasterCard could get to 10% market share, it could add $1.50 to annual earnings per share, the analyst tells investors in a research note.