Goldman Sachs: Mastercard Incorporated (NYSE:MA) - A Stock Both Hedge & Mutual Funds Love

Mastercard Incorporated (NYSE:MA) has garnered significant attention from both hedge and mutual funds, with Goldman Sachs maintaining a 'Buy' recommendation and a price target suggesting a 10.24% upside. This article delves into the factors driving the enthusiasm for MA among these investment entities.


Analysts' price targets for MA range from $404.00 to $495.60, with an average target of $441.72. This represents an increase of 10.24% from the latest reported closing price of $400.69. The highest price target is $495.60, indicating a potential 23.75% upside, while the lowest target is $404.00, suggesting a 1.60% downside.


The average price target has been trending upward over time, reflecting analysts' bullish sentiment towards MA. Recent price target changes include:

* Daiwa Securities adjusting their price target to $470 from $465, maintaining a 'Neutral' rating.
* Autonomous Research cutting their price target to $500 from $502.
* Piper Sandler adjusting their price target to $536 from $531, maintaining an 'Overweight' rating.


Hedge funds and mutual funds have shown increased interest in MA. In the last quarter, hedge funds decreased their holdings by 1.3M shares, while mutual funds increased their ownership. This shift in sentiment is likely driven by MA's strong financial performance and growth prospects.


Key reasons behind the change in sentiment among hedge and mutual funds towards MA include:

1. Strong financial performance: MA reported a projected annual revenue of $25,812MM, an increase of 13.12%.
2. Dividend payout: MA declared a regular quarterly dividend of $0.57 per share, representing a yield of 0.57%.
3. Growth prospects: MA's 3-year dividend growth rate of 0.42% demonstrates its commitment to increasing shareholder value.

In conclusion, Mastercard Incorporated (NYSE:MA) has attracted significant attention from hedge and mutual funds, with Goldman Sachs maintaining a 'Buy' recommendation. The stock's strong financial performance, dividend payout, and growth prospects have contributed to the bullish sentiment among analysts and investment entities. As MA continues to expand its global presence and drive innovation in the payments industry, investors can expect the stock to remain a popular choice among both hedge and mutual funds.