Investors should buy MasterCard shares as possible inflation and its new technology initiatives may lead to better financial results, according to RBC Capital Markets, which upgraded the payments company to a top pick from outperform.
"We are upgrading MasterCard. ... MA is cycling out of a period of trough earnings driven by the global economic backdrop [and has a] business model that offers an inflation call option," analyst Daniel Perlin wrote in a note to clients Thursday. "We believe three major innovation themes (tokenization, push payments, and IoT [internet-of-things]) will drive incremental secular growth into 2020."
