Visa, Mastercard stocks get upgrades at Jefferies

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Shares of Visa Inc. and Mastercard Inc. both got bullish upgrades at Jefferies Wednesday ahead of an expected economic recovery. Jefferies analyst Trevor Williams cited a “rare stretch of underperformance” that positions Visa and Mastercard well for 2021. Visa shares have gained 2.6% over the past three months as Mastercard shares have risen 0.3% and as the S&P 500 has added 8.5%. “With the rollout of the vaccine underway, we have increasing confidence in an eventual international travel recovery, which we believe will drive the stocks in 2021 as a more normalized earnings stream in 2022 and 2023 becomes discounted by the market,” he wrote in upgrading Visa and Mastercard shares to buy from hold. He upped his Visa price target to $250 from $195 and raised his Mastercard target to $415 from $315. Visa shares are up 0.2% in Wednesday morning trading while Mastercard shares are up 1.1%. Visa announced late Tuesday that it was terminating its planned $5.3 billion acquisition of fintech company Plaid due to regulatory pushback from the Justice Department and an expectation that the Justice Department’s antitrust lawsuit would take too much time to play out.
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