If you aren't making 40% in 40 minutes…
ACT NOW and join the ONE trading expert who can help make you: $4,100 richer... in 40 minutes… Or $4,800 richer... in 27 minutes… Or even $5,300 richer... in just two hours! Space is filling fast - if you want to get his live trade recommendations - click here NOW. >> [ad]Read More
One expert says these 2 stocks could see double-digit upside over the next twelve months.
MoffettNathanson analyst Lisa Ellis said in a note from Tuesday that two credit card companies are “in rarefied air among investment opportunities.”
In the note, Ellis reiterated her Buy rating on both stocks, and raised her price target for Mastercard to $365 and for Visa to $230, suggesting upside of 18% and 19%, respectively.
The analyst doesn’t see any end in sight for both stocks’ stellar financial performances. Over the last year, both stocks have surged with Visa shares gaining 40% and Mastercard shares rising 58%.
According to Ellis, while Mastercard has outperformed Visa over the last year, both companies have been “permanently rerated,” and their valuations aren’t likely to fall because both companies have “demonstrated the consistency” in their business models.
They’ve also “dispelled disruption fears with [their] recent spate of partnership with digital wallets (e.g., Paytm, Alipay) and tech giants (e.g., Apple, Amazon),” Ellis wrote.
Ellis added that the key for Visa will be to close its share price performance with Mastercard, and could do so if it’s able to successfully integrate its European platform.
Susquehanna analyst James Friedman has said that Visa could close its valuation gap with Mastercard thanks to its “prominent commercial practice, targeting key international markets, and is experimenting with service fees.”
While Wedbush’s Moishe Katri said Visa’s earnings “will likely be augmented by ongoing efforts to target other, relatively under-penetrated alternative payments markets, including [business-to-business].”
The Top 5 Tech Stocks Set for Monster Growth in 2020
One of the best ways to double, if not triple your investment in 2020 will be found in tech stocks. Especially those involved with the 5G rollout, where we're still finding undervalued opportunities. In our latest special report, we detail these and other hot tech stocks that should be part of your portfolio right now. [ad]Read More