MA – Market expectations are for record-high Uniform ROA, but management may have concerns about their partnerships, growth, and the macro outlook

• Mastercard Incorporated (MA:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 36.0x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about their various partnerships, core business growth, and macro spending levels.
  
  
• Specifically, management may lack confidence in their ability to expand relationships with key institutional partners, drive digital enablement in stores and online, and maintain core product growth. In addition, they may be overstating the potential of their Verizon partnership and their position to capitalize on the return of travel spending. Furthermore, they may also have concerns about trends in critical macro indicators such as commercial credit levels, cross border spending, and the sustainability of domestic spending. Also, they may have concerns about in-person purchase transactions mix from contactless penetration and the revenue contributions from acquisitions. Finally, they may be concerned about the sustainability of data demand as a driver for cybersecurity solutions and the competitive pressures surrounding Finicity.