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Fly News Breaks for March 3, 2020
Mar 3, 2020 | 07:34 EDT
JPMorgan analyst Tien-tsin Huang lowered the firm's estimates for MasterCard (MA), PayPal (PYPL) and Visa (V) to account for the COVID-19 outbreak. As suggested by the recent share weakness, COVID-19 fears have negatively impacted cross-border travel, especially tied to Asia, and to a lesser extent, e-commerce activity, Huang tells investors in a research note. The analyst sees the greatest Q1 earnings "drag" for Visa and Mastercard given their high decremental margins, but he believes both companies can manage expenses and/or stock repurchases to offset at least a portion of it. Nonetheless, Huang keeps Overweight ratings on all three names.