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Mastercard Inc. shares are rising Wednesday after the payments titan kicked off its investor day presentation by delivering new growth targets for the next few years.
The company expects to grow net revenue at a “high-teens” percentage compound annual rate from 2022 to 2024, it disclosed in a filing with the Securities and Exchange Commission. Mastercard
MA,
is also looking for a minimum annual operating margin of 50% over that span, and it anticipates a “low-twenties” compound annual growth rate on earnings per share.
The targets struck Baird analyst David Koning as “strong particularly given investors fear new fintech, regulation, and pace of [cross-border] recovery,” he wrote in a note to clients.
Shares of Mastercard are up 1.6% in morning trading Wednesday.
Mastercard will be looking to capture new growth avenues in payments, where it sees a $255 trillion total addressable market with “significant untapped opportunity,” per the company’s investor presentation. Within that market opportunity, Mastercard sees room to grow its role in consumer payments through an acceleration of digital adoption and the introduction of new use cases. The company is also upbeat about its potential in areas like remittances, commercial transactions, and bill payments.
The payments giant also aims to grow its services business, which is expected to bring in more than $6.5 billion in revenue this year.
Mastercard further plans to enhance its positioning through an embrace of newer networks beyond the traditional card rails. The company has been diving deeper into open banking, which makes it easier for consumers to link their financial data to other services.
The company has been seeking to get more involved in the world of buy-now pay-later purchasing and announced in a Wednesday release that it will work with a series of new partners, including American Airlines Group Inc.
AAL,
and Fiserv Inc.
FISV,
on its installment efforts.
See also: Mastercard gets into the BNPL game with new installment offering
The stock has lost 3.7% over the past three months as the S&P 500
SPX,
has risen 5.2%.
