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MA – Market expectations are for sustained Uniform ROA expansion, but management has concerns about QR code systems, growth in India, and their partnership with The N26 Bank

August 14, 2018

  • MasterCard Incorporated (MA:USA)currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 28.9x Uniform P/E, suggesting bullish expectations for the firm. However, management has concerns about merchant’s acceptance of QR code systems, their ability to maintain debit growth in India, and their partnership with N26 in Germany
  • Specifically, management appears to lack confidence in the market’s acceptance of QR codes and may be concerned about competitors building their own QR code systems. Moreover, they appear concerned about their commercial debit partnership with N26 in Germany and about their ability to sustain debit growth in India. Finally, they may to lack confidence in their ability to maintain volume and transaction growth across their markets

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