BUZZ-Street View: Mastercard's core trends look intact despite strong dollar

Reuters05-02

** Mastercard's Q1 profit exceeded Wall Street expectations on Wednesday, on higher card spending despite rising borrowing costs and persistent inflation

** Co expects 2024 net rev growth low-end of low-double-digits

** Shares ended ~2% lower at $442.07 on Wednesday

VALUE ADDED SERVICES TO BE MAJOR PART OF GROWTH

** KBW ("outperform", PT: $550) says while forex will pose headwinds to co's EPS, core trends remain "solid" and lowered GAAP rev/EPS outlook likely provides more conservative scenario, with upside potential in H2

** Jefferies ("buy", PT: $540) believes there is no cause for concern on MA's cross-border spending volumes through April and volume growth slowed outside the U.S. as a result of Easter timing

** Morgan Stanley ("Overweight", PT: $524) expects value added services to be increasing part of growth trajectory as currency conversion opportunity for company matures in key developed markets

** Evercore ISI ("outperform", PT: $540) notes though co faces FX headwinds to EPS, underlying trends remain intact with resilient consumer spending, growing global presence and value-added service

** Views MA as "battleship steady with speedboat growth"

** Raymond James ("outperform", PT: $497) expects MA's 2024 rev and EPS estimates to move lower given stronger dollar

(Reporting by Roshan Abraham)

((Roshan.Abraham@thomsonreuters.com))

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