MasterCard "buy," target price raised

05/30/08 - Deutsche Securities

NEW YORK, May 30 (newratings.com) - Analysts at Deutsche Bank Securities reiterate their "buy" rating on MasterCard Inc (MA), while raising their estimates for the company. The target price has been raised to $350.

In a research note published this morning, the analysts mention that the company has raised its three-year targets for revenue growth, EBITDA margins and net income growth from 8%-10% to 12%-15%, from 100-200bps to 300-500bps and from 15%-20% to 20%-30%, respectively. MasterCard’s GDV growth rate continues to be driven by the international market, and the company's cross border volumes are expected to continue to be robust, the analysts say. The EPS estimates for 2008 and 2009 have been raised from $8.50 to $8.65 and from $11.40 to $11.50, respectively.