MasterCard's price of $93.70 is about 28 times higher than per-share earnings last year. That's a discount to rival Visa but still a premium to both American Express (AXP) and the average for industry, according to Bloomberg data.
"The company will grow, but I prefer recommending the stock when it's not at the high end of its price range," said Wedbush Securities analyst Gil Luria. "It's trading at 23 times 2016 earnings, while my target is based on 22 times earnings."
Luria maintains a neutral rating with a price target of $90 per share. The stock currently trades at almost $94.
"The higher the multiple, the less room there is for air," he added. "The growth for MasterCard has remained steady for years, but at some point they'll reach the law of large numbers, so it's hard seeing the multiple go a lot higher."
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He attributes the company's success to the growth of the middle class across the globe and greater reliance on credit and debit cards compared with cash.