Mastercard and Visa Stocks on the Rise

Shares of Mastercard Inc. (MA) saw a significant increase of 1.25% in Tuesday’s trading, reaching a price of $397.05. This surge indicates that the stock is on track to surpass its previous record close of $396.75 achieved on February 2, 2022. Meanwhile, Visa Inc. (V) shares experienced a gain of 0.7% during Tuesday’s session, suggesting that they are poised to reach their highest close since August 9, 2021, when they finished at $240.

In a recent note to clients, SVB MoffettNathanson analyst Lisa Ellis expressed her optimism for both Mastercard and Visa’s prospects, referring to them as having “unusually attractive” potential entry points for investors. Ellis provided valuable insights, noting that Visa’s stock is currently trading at 1.30 times forward earnings, which is below its 10-year average of 1.51x, representing one of the lowest levels in the past decade. She further highlighted that Mastercard’s valuation is also lower than historical levels, though not as significantly, with a current ratio of 1.52x compared to a 10-year average of 1.64x.

Impressed with the positive outlook for both companies, Ellis increased her price target for Visa shares from $290 to $320 and raised her target for Mastercard’s stock from $460 to $490. In summary, Ellis rates both Mastercard and Visa as outperforming investments, reinforcing the promising potential for growth within these stocks.