January 9, 2011
Citigroup forecasts that the U.S. card and payment sectors will outperform in 2012, reports Reuters.
The brokerage points to indicators such as card loan growth and waning concerns over regulatory issues such as credit card interchange. As a result, it has increased its price targets for major card companies and processors.
“The brokerage increased its price target on MasterCard Inc (MA.N) to $375 from $360 citing healthy fundamentals. It raised its price target on Visa Inc (V.N) to $104 from $92,” reports Reuters.
It also added Capital One Financial Corp its “top picks live” list in light of its deal to buy ING’s U.S. online bank for $9 billion in cash and stock.
“Many factors support our view that the mobile wallet is unlikely to supplant the ‘traditional’ card-based payments market in a hurry,” Citigroup analysts, including Donald Fandetti, added in a note to clients.
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