Visa’s Growth Prospects and Resilience Amid Regulatory Challenges: A Buy Rating Rationale

In a report released today, Rufus Hone from BMO Capital maintained a Buy rating on Visa (V – Research Report), with a price target of $300.00.

Rufus Hone has given his Buy rating due to a combination of factors including Visa’s resilience in the face of regulatory developments and the potential for sustained growth in value-added services (VAS). Despite concerns around recent regulatory events, such as the MDL settlement and the Reg II, the anticipated impacts on Visa’s operations are considered modest, with limited expected changes at the point-of-sale. Furthermore, Visa’s continued confidence in the growth of its VAS, which currently makes up a significant portion of net revenue, supports the company’s prospects for increasing customer penetration and expanding its capabilities.
The analyst also points to Visa’s substantial opportunity to further penetrate consumer-to-business payments given the large volume of cash and checks still in circulation outside of Russia and China. Additionally, cross-border transactions are expected to remain robust, bolstered by the structural shift towards cross-border e-commerce and sustained strength in travel. These factors, along with the anticipated resilience of revenue and earnings growth fueled by high-growth new flows and VAS, position Visa as a compelling investment within the U.S. financial sector.

In another report released on May 13, Piper Sandler also initiated coverage with a Buy rating on the stock with a $322.00 price target.

Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of V in relation to earlier this year.

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Visa (V) Company Description:

Visa, Inc. engages in the provision of digital payment services. It also facilitates global commerce through the transfer of value and information among global network of consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It offers debit card, credit card, prepaid products, commercial payment solutions, and global ATM. The company was founded by Dee Hock in 1958 and is headquartered in San Francisco, CA.