Schaeffer's Top Stock Picks for '25

Citi Boosts Mastercard, Square Price Targets

MA options traders are eyeing more upside, too

Sep 10, 2019 at 9:57 AM
facebook X logo linkedin


Citigroup raised its Mastercard Inc (NYSE:MA) price target to $317 from $288 -- a nearly 12% premium to last night's close at $283.36, and above the average 12-month target price of $309.47. Broad-market headwinds are keeping a lid on MA stock in early trading today, though, with the shares last seen down 3% at $275.01.

Looking closer at the charts shows the credit card concern has been a long-term outperformer, up almost 50% year-to-date. More recently, MA stock has gained 8.3% since taking a sharp bounce off its 40-day moving average in early August, and hit a record high of $293.69 yesterday.

MA options traders are hoping for a quick bounce by week's end. The weekly 9/13 300-strike call has seen the biggest increase in open interest over the past 10 days, and data from the major options exchanges confirms buy-to-open activity here. In this case, call buyers expect Mastercard stock to surge above $300 by expiration at the close this Friday, Sept. 13.

Square Inc (NYSE:SQ) also saw its price target hiked at Citigroup, to $95 from $90. This new target represents expected upside of nearly 55% to Monday's close at $61.47, and sits in territory not seen since last October. Nevertheless, SQ stock is down 2.1% out of the gate at $60.16, extending a decline below its +10% year-to-date breakeven mark, which was breached in yesterday's trading.

Most analysts share Citi's upbeat outlook toward Square, which opens the door for bear notes, should the stock continue to slide. Currently, 16 of 31 covering brokerages maintain a "buy" or better rating, while the consensus 12-month price of $82.88 is a 38% premium to current trading levels.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?