Shares of Visa and Mastercard fell after Jefferies analyst Trevor Williams reduced his ratings on the two credit card companies to hold from buy, according to Bloomberg.
Jefferies in late March touted Visa as one of 47 companies with "strong fundamentals" that made great buys given valuation opportunities created by the stock market decline.
Visa's stock at last check fell 3.2% to $169.05 while Mastercard dropped 2.9% to $263. Stock futures are pointing to a rocky day for the markets.
Jefferies' Williams set a $275 price target for Mastercard, representing a modest premium over its current trading price and significantly lower than the $306-a-share average of analysts covering the stock, according to Bloomberg.
Jefferies is now one of four firms with hold ratings on Mastercard, compared with 37 who rate the stock buy.
The two dominant players in the credit card business have been hit hard by the near shutdown in international travel, with the downturn in the sector likely to last longer and run deeper than current consensus estimates, according to Jefferies.
The Jefferies analyst also warns of the potential for a "protracted series of downward estimate revisions" by both credit-card giants and the potential for a "negative shock" when they report transaction-volume numbers for April, according to the news service.