Analysts maintained their conviction on Mastercard Incorporated post Q1 results. Despite Mastercard’s 1Q22 10 percent broad-based beat, Barclays analyst James Fotheringham lowered estimates marginally (by as much as 2 percent) due to revenue headwinds expected from exiting Russia.
Fotheringham also cut the target price to $402 (from $412) and rated the stock as Outperform. The revised 2022E guidance for GAAP net revenue growth at the high end of mid-teens percent YoY (versus prior high-teens percent) implies elevated cross-border activity (now 112 percent of 2019 levels ex-Russia) should partially offset the revenue impact from exiting Russia for the remainder of this year.
Fotheringham recommended Mastercard and Visa Inc. as a core long-term FIG holding.
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