Mastercard (MA:NYE) and Visa (V:NYE) are set to announce their quarterly financial results on January 26, 2023. Despite macroeconomic headwinds, consumer spending and cross-border travel have remained resilient, which is expected to support the earnings of these leading payment network providers.
Mastercard Inc. (MA:NYE):
Mastercard is expected to post earnings of $2.58 per share in Q4 2022, a 10% year-over-year increase. Jefferies analyst Trevor Williams has increased his price target on MA stock to $430 from $370 ahead of the Q4 earnings.
Williams notes that Mastercard’s diversified business model and ability to modulate expenses positions it well to navigate current macroeconomic challenges, and the ongoing cross-border recovery and increased exposure to the Asia-Pacific region keep him bullish.
MA stock has a “Strong Buy” consensus rating based on 20 “Buys” and one “Hold” with an average price target of $405.46, implying a 9.55% upside potential.
Visa Inc. (V:NYE):
Visa is set to announce its Q1 financial results on January 26. Wedbush analyst Moshe Katri has named Visa his top pick, citing resilient consumer and travel trends.
Despite macroeconomic uncertainty and geopolitical turmoil, Visa delivered strong financial results in Fiscal 2022, with management highlighting strength in consumer payments, resilient e-commerce trends, and recovery in cross-border travel.
Wall Street expects Visa to post earnings of $2.01 per share in Q1 compared to $1.81 in the prior-year quarter. Visa stock has a “Strong Buy” consensus rating with 18 “Buys”, one “Hold” and two “Sells” with an average Visa stock price target of $251.58, implying a 14.69% upside potential.
In conclusion, despite the challenges posed by macroeconomic headwinds, the resilience of consumer spending and favorable travel trends are positives for Mastercard and Visa, the leading payment network providers. Analysts maintain a bullish outlook on both stocks, with “Strong Buy” consensus ratings and upside potential.