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On Wednesday, after the closing bell, Mizuho initiated coverage on nine different companies within the financial technology and payments sector. Given the uncertainty created by the COVID-19 pandemic, analysts from Mizuho felt that the future of fintech companies could see growth due to the increased need for methods such as contactless payments. Of those nine companies, seven were initiated with a Buy rating (FISV, FIS, MA, PYPL, SQ, V, WEX) and two were initiated at a Neutral rating (FLT & GPN).

From Mizuho's initiation report, Visa Inc. was given a Buy rating with a price target of $250. The analysts believe that Visa has shown the potential for long-term sustainability and strong US growth.

Square Inc. has shown the ability to have outsized growth without the normal operations from small businesses created from COVID which resulted in a Buy rating with a price target of $225.

WEX Inc. was given a Buy rating with a price target of $225 due to its bottom-up model demonstrating the company’s future performance of maintaining solid growth.

PayPal was given a Buy rating with a price target of $285. Due to the broad consumer rate, Mizuho predicts a $400-$500bn total addressable market (TAM) opportunity for PayPal.

Fiserv Inc. has followed a pattern of steady growth which outperforms others within their given industry leading to a Buy rating with a price target of $145

Fidelity National Information was given a Buy rating with a price target of $165 due to its continued position as a market leader in the “bank core processing and payments” sector.

Mastercard has been performing well with higher card usage in the United States allowing Mizuho to give them a Buy rating with a price target of $400.

Fleetcor Technologies, Inc. was given a Neutral rating with a price target of $250. This can partly be attributed to the competition posed by the electric vehicle industry.

Global Payments has a high level of T&E exposure in legacy and heartland payments, which is expected to be a slow growth, which is why GPN has a price target of $165 and is rated as neutral.

Disclosure: At the time of publication, we have no positions in any of the securities mentioned in this article. We wrote this article ourselves, and it expresses our own opinions. We are not receiving compensation for creating this article (other than from TheStreet) and have no business relationship with any company whose stock is mentioned in this article.