Mizuho Slashes Price Targets of Mastercard, Visa Out of Precaution

By Benzinga
July 2, 2022 Updated: July 2, 2022

Mizuho analyst Dan Dolev maintained Mastercard Inc. with a Buy, cut the price target from $435 to $375, maintained Visa Inc. with a Neutral, and lowered the price target from $235 to $215.

The revival of the highly lucrative cross-border volumes following the COVID-19 shock to the travel industry remains a significant component of the medium-term bull thesis for both Visa and Mastercard, as per Dolev.

However, while travel-related stocks and visits to online travel agencies and other travel websites, a proxy for booking strength, have weakened, Visa and Mastercard have yet to meaningfully correct, he added.

Dolev was optimistic about the continued momentum in cross-border spending.

However, out of precaution, he slightly lowered estimates, multiples, and price targets for both Visa and Mastercard, which now reflects a more difficult foreign exchange and market environment.

By Anusuya Lahiri 

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