Opinions
Danesh Rohinton
Mastercard Inc.
MA-N
TOP PICK
Jul 25, 2024
Stock price when the opinion was issued
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Likes it still. Long-term, secular growth in digital payments. Cyclical growth due to cross-border travel and e-commerce. About 15% earnings growth rate. Technicals continue to look good. May benefit from DOJ action against Visa.
Retail sales are hitting new highs, despite worries about consumer turning over. Interest rates moving lower is a benefit to the consumer and, therefore, to a name like MA.
Increased demand for credit cards and online shopping will continue. Partnership with NFLX focuses on live events. None of these partnerships will generate a ton of revenue, but it's ingenious how they're gaining access to the consumer. Yield is 0.5%.
(Analysts’ price target is $564.73)Capitalizing on shift to digital payments. Increasing cross-border travel helps names like this, as cross-border transactions are high margin. Fintech and AI are unlocking areas of revenue. Interesting partnerships and acquisitions. Cashflow remains high. Yield is 1.0%.
Exceeding expectations on quarterly results. Seeing ~13% annual earnings growth going forward. Shares are down 10-11%, attractive entry point.
Toll road, along with Visa. A choice for a consumer stock that benefits from inflation, deflation, and everything in between. Best place to be for high margins, secular growth, global reach. Yield is 0.6%.
(Analysts’ price target is $512.54)Along with Visa, has never been cheaper on an absolute basis, especially relative to the rest of the market. Quality, profile, ubiquitous growth opportunities. We are going through headwinds, so you have to believe that we'll come out the other side in a more positive place. We'll look back at this time and see what a great opportunity it was.
He's held this for a decade, hopes to for a decade more, but it's still a good opportunity today.