NEW YORK (TheStreet) -- Shares of Mastercard Inc. (MA) are slightly lower in pre-market trade after it was reported that the global payments company lost a court challenge to a EU antitrust curb on card-payment fees in a ruling that increases efforts to limit a cash cow for banks, Bloomberg reports.
The EU's Court of Justice ruled today that the fees set by MasterCard had unfairly restricted competition and that it failed to show benefits to justify its system.
The judgment may spur legal proceedings against card levies across Europe, including the U.K.'s stalled antitrust probe and lawsuits by retailers. EU lawmakers and governments are also weighing limits on the charges, Bloomberg said.
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, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: