Analyst Note| Brett Horn, CFA |
While there were some differences, Mastercard’s second-quarter results largely echoed what we saw from Visa earlier in the week. The coronavirus pandemic has led to major declines for the payment networks, and in one respect, they are particularly exposed relative to other payment names. However, the impact should be transitory, and in the long run the pandemic will likely accelerate the ongoing shift toward digital payments. We see nothing to shake our belief that Mastercard and Visa’s competitive position is essentially unassailable or alter our favorable long-term view. We will maintain our $272 fair value estimate and wide moat rating.