Feb. 3 at 3:02 PM
Daiwa upgraded Mastercard and Visa to Outperform after recent earnings, citing strong performance, resilient outlooks, and improved risk-reward profiles that outweigh regulatory and monetary policy concerns.
Mastercard reported fourth-quarter net revenue growth of 18% year over year (15% in constant currency) and a 25% increase in non-GAAP EPS, driven by steady transaction volumes, strong value-added services, and lower expenses. The company expects fiscal 2026 revenue growth at the high end of low double digits. The renewal of its Capital One partnership also reduced uncertainty. Daiwa set a
$610 price target, highlighting attractive valuation and limited regulatory risk.
Visa posted 15% first-quarter net revenue growth, with non-GAAP EPS rising 15% to
$3.17, supported by value-added services, commercial solutions, and currency benefits, partially offset by higher marketing spending.
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