NEW YORK (AP) -- A Citi Investment Research analyst upgraded MasterCard Inc. Wednesday, writing in a note to investors that a negative adjustment in consumer spending is largely over.
Analyst Donald Fandetti lifted his rating for the credit card and global payments processor to "Hold" from "Sell" and lifted his price target to $209 from $172. While consumer spending remains weak and there is a trend towards less consumption, Fandetti said he has a positive outlook for the sector.
"We are upgrading ... as signs of stabilization in U.S. and global economies simply make us less bearish," Fandetti said.
Tougher new card regulation and constrained credit will likely contribute to soft volumes, Fandetti said. Still, fourth-quarter results should be an improvement from a year ago and would get a boost from any weakness in the U.S. dollar.
Fandetti also upgraded Capital One Financial Corp. Wednesday, citing an expected improvement in credit losses.
Shares of MasterCard rose $2.28, or 1.1 percent, to $209.73 in late trading. The stock has traded between $113.05 and $239 over the past year.
