Industrials

Visa’s persistent growth continues to be underestimated by Wall Street, UBS analysts say in a research note. The digital payments company has attractive qualities in the current environment and could grow through moderate recessionary conditions, analysts say. The company also has high-quality EPS and margins. Still, investors are concerned about cash to card conversion slowing, as well as on U.S. online debit routing, creating an attractive buying opportunity, analysts add. Shares fall 1.4% to $268.93.

Visa’s (V) earnings could benefit from the ongoing strength of international travel, Morgan Stanley said Friday in a note. The investment firm’s expectations are based on management’s commentary on healthy travel volumes in Latin America, Europe, Central Europe, Middle East, and Africa and the US. Visa’s international volumes showed healthy growth while US domestic spending witnessed a slowdown due to various transient factors, including a less favorable mix of weekends, softer performance in October and impacts from debit card regulations, the brokerage firm said. Morgan Stanley revised the price target on V’s stock to $318 from $292 and reiterated overweight rating.

Visa is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. It reported fourth-quarter adjusted earnings of $2.41 a share on Thursday, while analysts surveyed by FactSet had expected $2.34. Visa also said U.S. payment volume growth slowed in January amid extreme weather conditions. Raymond James, RBC Capital and UBS raised Visa price targets on Friday. Shares were recently down 1.6%. Dow Jones & Co. owns Factiva.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our target price of $325, up $35, values shares at 28.3x our FY 25 (Sep.) EPS, discounted to V’s 5-year historical average of 31.9x, given the higher rate environment and moderately slower growth expectations. We decrease our FY 24 EPS estimate to $10.13 from $10.16 and lower FY 25’s to $11.49 from $11.61. Visa reported Dec-Q results, with net revenues of $8.63B (+9% Y/Y) and adj-EPS of $2.41, surpassing consensus estimates of $8.56B and adj-EPS of $2.34. Payment volume (+8%) slowed in the quarter as strength in Europe and LAC was met with weakness in the U.S. and Asia Pacific. Unfortunately, management highlighted that January is off to a rocky start in the U.S. (+4%), but we see this as a low water mark as severe weather

Visa Inc. (NYSE:V) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/26/2024 17.36% Raymond James $287 → $311 Maintains Outperform 01/18/2024 0% Mizuho $243 → $265 Maintains Neutral 01/08/2024 13.21% Keybanc $275 → $300 Maintains Overweight 12/20/2023 — Monness, Crespi, Hardt Initiates Coverage On → Neutral 12/14/2023 15.09% UBS $295 → $305 Maintains Buy 12/12/2023 11.32% Jefferies $280 → $295 Maintains Buy 12/05/2023 5.66% BMO Capital → $280 Initiates Coverage On → Outperform 10/31/2023 -8.3% Mizuho $240 → $243 Maintains Neutral 10/30/2023 4.91% Barclays $285 → $278 Maintains Overweight 10/25/2023 1.89% Wedbush → $270 Reiterates Outperform → Outperform 10/25/2023 8.3% Raymond James $284 → $287 Maintains Outperform 10/18/2023 -4.91% Oppenheimer $248 → $252 Maintains Outperform 10/18/2023 3.77% Keybanc $265 → $275 Maintains Overweight 10/13/2023 0.38% HSBC → $266 Initiates Coverage On → Hold 10/12/2023 7.55% Barclays $287 → $285 Maintains Overweight 10/12/2023

Visa (V) reported fiscal Q1 non-GAAP earnings late Thursday of $2.41 per diluted share, up from $2.18 a year earlier. Analysts surveyed by Capital IQ expected $2.34. Revenue for the quarter ended Dec. 31 was $8.63 billion, up from $7.94 billion a year earlier. Analysts surveyed by Capital IQ expected $8.56 billion. The company said it expects EPS growth in the high teens for fiscal Q2 and in the low teens for fiscal full-year 2024. It expects net revenue growth in the upper mid to high single-digit for fiscal Q2 and low double-digit for the fiscal full year. The company kept its quarterly dividend at $0.52 a share, payable March 1 to shareholders of record on Feb. 9.

Wedbush Raises Visa’s Price Target to $280 From $270 After Above-Consensus Fiscal Q1 Results, Maintains Outperform Rating.