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Mastercard stock gets rare downgrade at Oppenheimer

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Mastercard Inc. shares MA, +0.82% were subject to a rare downgrade late Monday as Oppenheimer's Dominick Gabriele cut his rating on the card network to perform from outperform. Gabriele argued that Visa Inc. V, +0.63% could recapture lost market share in Europe at Mastercard's expense. "Given the importance of Europe to both intra/inter- cross-border revenues to total revenue, we believe Europe is strategically significant when trying to accelerate revenue growth going forward," he wrote. Gabriele also worries about generally elevated price-to-earnings multiples for both Visa and Mastercard. "The drift in investor base toward value and slowing growth could result in multiple contraction/stabilization for V/MA outside of revenue/EPS acceleration," he wrote. Of the 36 analysts tracked by FactSet who cover Mastercard's stock, 31 have buy ratings, four have hold ratings, and one has a sell rating. The company announced Tuesday morning that it would be acquiring open-banking company Finicity for $825 million. Mastercard's stock is near flat in Tuesday's session. The stock has rallied 50% over the past three months as the S&P 500 SPX, +0.12% has gained 40%.

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