© Reuters.
Investing.com — Payment giants Visa Inc (NYSE:) and Mastercard Inc (NYSE:) are relatively cheap stocks to buy now, according to analysts at MoffettNathanson, which raised its price targets for each.
The firm raised its price target on Visa to $320 from $290 and on Mastercard to $490 from $460.
Shares of Visa slipped 0.5% on Friday but are up 14% so far this year. Shares of Mastercard also slipped 0.5% and are up 12% this year.
The analysts note that Visa and Mastercard valuations have reset largely on technical grounds: investors have been rotating out of some sectors to catch onto shares in the artificial intelligence sector.
“Business momentum is strong – the networks have both delivered nine straight quarters of positive surprises on revenues and EPS – and they are not facing any new or unusual risks or threats of disruption that would pressure their valuation,” the firm said of the stocks.
The firm reiterated its outperform rating on both Visa and Mastercard.
