NEW YORK (TheStreet) -- Mastercard Inc (MA) shares had coverage initiated with a "sector perform" rating by analysts at Pacific Crest on Tuesday.
The firm praised the credit services company for improving brand image, but notes that it still lags behind other credit card companies as an online payment brand in a survey they conducted.
Pacific Crest also cited regulatory and acquisition concerns as a reason for trepidation.
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"MasterCard is well positioned internationally, but we think investors may focus more on European regulatory outcomes and the magnitude of the U.S. Chase conversion in the near term," the firm said.
"That said, if the global macroeconomy were to meaningful improve, we think MasterCard could disproportionately benefit from a higher international transaction mix (low-60s) and a heavier credit mix (mid-50s) that tends to be more economically sensitive," they concluded.
Separately, TheStreet Ratings team rates MASTERCARD INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MASTERCARD INC (MA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."