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- BNP Paribas upgraded Visa (NYSE:V) to Outperform and downgraded Mastercard to Neutral as cash digitization has largely played out in the U.S., leaving limited opportunities in other regions.
- Valuation explains the direction of the ratings actions for the two card payment networks. With a 24x multiple on enterprise value/unlevered free cash flow CY25, Visa (V) screened well compared with its peers, BNP Paribas analyst said. However, Mastercard’s (NYSE:MA) 33x looked less attractive. BNP now expects Mastercard’s revenue growth to slow in line with Visa’s.
- BNP’s Outperform rating on Visa (V) contrasts with the SA Quant rating of Hold and aligns with the average SA Analyst rating and average Wall Street rating, both at Buy.
- Its Neutral rating on Mastercard (MA) agrees with the SA Quant rating of Hold and disagrees with the average SA Analyst rating and average Wall Street rating, both at Buy.
- Visa (V) stock rose 1.6% and Mastercard (MA) stock increased 0.5% in late Tuesday morning trading.
