How Will MasterCard (MA) Stock React to Potentially Entering China?
NEW YORK (TheStreet) -- MasterCard (MA) - Get Report could apply this year to become a payment service provider in China after the government opened the market, but is still deciding whether to go at it alone or with a partner, Reuters reports.
China is "pretty crucial" to the company's future, but MasterCard is still looking into rules in China that would impact its business and is creating a business plan, Ann Cairns, president of international markets, told Reuters.
In June, China allowed foreign payment card companies to operate in the nation under new rules.
That potentially gives companies such as MasterCard and Visa (V) access to its 55 trillion yuan ($8.25 trillion) card payment market, Reuters noted.
"We're trying to understand the rules," Cairns said, "Certain things inside the rules - such as the new cyber rules, which need more development and understanding about how they're going to work."
She added that MasterCard would like to enter China as soon as possible, according to Reuters.
Shares of MasterCard are lower by 0.01% to $92.45 in pre-market trading on Friday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MA