Mastercard Feeling Downgrades (MA, V, AXP)

Mastercard Incorporated (NYSE: MA) is suffering from a Goldman Sachs research analyst downgrade this Wednesday.  The call was based in part due to headwinds internationally and in part due to valuation.  The downgrade took the rating down to Neutral with a $380 price target from Buy with a $400 price target.

Visa, Inc. (NYSE: V) and Mastercard were both recently downgraded in prior trading days by Janney Capital Markets from Buy to more cautious Neutral ratings as well.  These two stocks often act as magnets to each other.  Unlike American Express Co. (NYSE: AXP), both Visa and Mastercard are mere toll road operators rather than operating a toll road and having a vested interest (literally) in the total balance of a customer’s transaction history.

If the consensus price target from Thomson Reuters has any real merit to it, Mastercard had more implied upside than Visa.

Mastercard is down 2.2% more to $341.00 at a time that bank stocks have been performing well so far to start off the year. The stock’s dividend-adjusted price at the end of 2011 was $372.66; Visa is down 1% at $98.74 against a 2011 year-end price of $101.53.