Mastercard stock gains after Bank of America upgrade

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Shares of Mastercard Inc. are up 1.1% in Wednesday morning trading after Bank of America analyst Jason Kupferberg upgraded the stock to buy from neutral. “We believe Mastercard is an ideal way to get exposure to macro/consumer spending recovery as vaccine distribution accelerates, and find risk/reward attractive as shares have traded flat the past four months,” he wrote in a note to clients. He noted that the pandemic has accelerated the move toward digital payments and away from cash, a trend that should “further strengthen the long-term structural bull case” for Mastercard, Visa Inc. and PayPal Holdings Inc. . Consumers have shown a growing preference for debit spending over credit spending during the pandemic, but Kupferberg thinks there could be a “narrowing of the gap between debit and credit volume growth” in the second half of the year as consumers could start spending more heavily on discretionary categories like travel and events, which are the types of purchases often made with credit cards. Mastercard shares have added 4% over the past three months as the S&P 500 has risen 12%.
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