Morgan Stanley (NYSE: MS) analyst say that both Visa Inc (NYSE: V) and MasterCard Inc (NYSE: MA) may be undervalued, even though Senate Democrats are attempting limit the fees that credit card companies can charge to merchants.
Visa Inc. and MasterCard Inc. may be undervalued as U.S. Senate Democrats struggle to muster votes for legislation to help merchants cut credit-card fees, Morgan Stanley analyst Adam Frisch said.
“The severity of the language in the proposed amendments, in their current form, increases the potential for a 60-vote approval requirement,” Morgan Stanley analyst Adam Frisch wrote on Thursday.
Various proposals in the Senate could eliminate more than $40 billion annually in interchange fees collected by credit card issuing banks.
