Market Currents

MasterCard (MA) and Visa (V) shareholders can look forward to higher capital returns over the...

Monday, October 1, 2012, 4:30 PM ET
MasterCard (MA) and Visa (V) shareholders can look forward to higher capital returns over the next three years, J.P. Morgan's Tien-tsin Huang forecasts. With relatively low capex needs and few large acquisition candidates, the analyst thinks MA and V can return the majority of profits to shareholders while still investing for future growth, noting each have ~$5B in unrestricted cash on hand.

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This news story has 4 comments:

thesoulofashark.com Comments (22)

I don't see how you can be bearish on this industry.

1 Oct 2012, 04:45 PM Reply Like

chopchop0 Comments (1721)

Yup. They both eeked out yet another all-time high today. V above 138, MA above 473. Long both to infinity!

3 Oct 2012, 04:06 PM Reply Like

Snoopy1 Comments (712)

I like the industry but my question is what is a good forward P/E for Visa?

I think the buy/trim range should be 17.5x/20.0x and right now it's 19.5x ($140/sh) so it's a little too high to buy now IMHO.

6 Oct 2012, 03:37 PM Reply Like

chopchop0 Comments (1721)

Cramer just pumped both MA and V big on mad money today as two of his 4Q growth picks. Makes me nervous now. They do have high P/E's but this is accompanied by projected double-digit growth

9 Oct 2012, 10:51 PM Reply Like

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