Mastercard Inc. shares
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.
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
has gained 40%.