FOUR - Visa Mastercard FIS get new Buy ratings as Goldman picks up on payments
Goldman Sachs analyst Will Nance is starting coverage of the payment technology sector with an overall constructive view on the space and is most optimistic about Visa (NYSE:V) and Mastercard (NYSE:MA), both with Buy ratings. After payment stocks relative valuations dropped in the past six months, "we believe these stocks are well set to navigate a low-growth inflationary world as a result of continued secular tailwinds and exposure to price increases," Nance wrote in a recent note to clients. Visa (V) and Mastercard (MA) have been under-earning as cross-border revenue starts recovering but is still depressed. That recovery "along with higher inflation should provide an idiosyncratic growth impulse and a partial offset to any macro weakness," the analyst said. Of large-cap acquirers, the analyst likes FIS (NYSE:FIS), "as we believe its banking business should benefit from an acceleration in technology spending, and we also favor its enterprise and e-commerce focused
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Visa, Mastercard, FIS get new Buy ratings as Goldman picks up on payments