NEW YORK - As of press time, stock analysts expect MasterCard to make its initial public offering of stock this week, but split on how much of a run up the stock might have and on what the long-term prospects for the issue might be.
Some analysts expect a strong run up, noting that if the stock's initial price comes in as expected at $41.50 or roughly eleven times earnings, it will be relatively low. Other analysts point out that the entire credit card industry may be in for some rougher sailing ahead, due to increasing short term interest rates, and that may dampen the offering's appeal.
The company posted its $126.7 million profit for the quarter ending March 31, nearly 36% higher than the year-earlier period, according to a filing with the U.S. Securities and Exchange Commission. MasterCard also said it had sales of $738.5 million during the quarter, up nearly 12% from a year ago.
MasterCard, which is owned by some 1,400 banks that issue its cards, serves nearly 25,000 financial institutions in 210 countries and territories, according to its filing with the Securities and Exchange Commission.