Serving 25,000 members worldwide in more than 210 countries, Mastercard Inc. (NYSE: MA) is the second largest payment system, behind Visa (NYSE: V), issuing credit and debit brand cards which provide access to its transactions network. For a fee, of course.

And revenue from those fees and other charges is advancing at a solid pace. In general, analysts expect F2008 revenue to increase a solid 20-25%. Further, while U.S. gross dollar volume increases will slow with the slow-growth U.S. economy in 2008, international GDV growth should remain robust.

In addition, Mastercard has multiple opportunities to increase market share, both domestically and internationally, as acceptance of credit card use for non-traditional purchases grows. Analysts are also impressed by debit card and prepaid card program progress. The Reuters F2008/F2009 EPS consensus estimates for MA are $8.647/$10.86.

The risks? Mastercard remains vulnerable to a protracted U.S. economic slowdown, and analysts also are also keeping an eye on the rise of new competitors into the transaction space, primarily PayPal.

The First Call mean rating for MA is: Buy. [21 firms.] Mean 2008 target: $333. [high: $390, low: $245.]

Stock Analysis: Mastercard is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from MA's shares. Note: More-cautious investors may wish to wait until MA pulls-back to $270-280, but keep in mind Mastercard may not retreat to that level. Sell / Stop Loss if you were to purchase shares in this company: $215.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

Few would deny that the electronic transaction via a credit or debit card is playing a larger role in U.S. and international commerce. And that's good news for Mastercard Inc. (NYSE: MA).

Serving 25,000 financial institutions worldwide in more than 210 countries, Mastercard Inc. (NYSE: MA) is the second largest payment system, behind Visa, issuing credit and debit brand cards that provide access to its transaction network. For a fee, of course.

Further, revenue from those fees and other charges is advancing at a solid pace. In general, analysts expect 15-20% revenue growth in 2007, and 14-17% in 2008. Margins should also be solid. The Reuters F2007/F2008 EPS consensus estimates for MA are $5.57/$6.83.

Other positives: Mastercard has multiple opportunities to increase market share, both domestically and internationally, as acceptance of credit card use for non-traditional purchases grows. International growth opportunities are likely to offer larger market share gains.

The drawbacks? Mastercard remains vulnerable to a U.S./global economic slowdown, and analysts are also watching the appearance of new competitors in the payment space, building price pressure.

The First Call mean rating for MA is: Buy [20 firms]. Mean 2008 target: $210.20 [high: $300, low: $155].

Stock Analysis: Mastercard is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from MA's shares. Sell / Stop Loss: $145.