Jason Kupferberg, an analyst from Bank of America Securities, maintained the Hold rating on Visa (V – Research Report). The associated price target remains the same with $363.00.
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Jason Kupferberg’s rating is based on a comprehensive assessment of Visa’s current market conditions and strategic initiatives. Despite Visa’s strong business model and the initiation of its “Visa-as-a-Service” era aiming to enhance its payment capabilities and client base, there are lingering uncertainties. These include concerns about the core revenue growth, potential litigation and regulatory risks, and what is perceived as a full valuation at approximately 31x/28x projected earnings for fiscal years 2025 and 2026.
Additionally, while Visa showcased its growth potential through its VAS and CMS disclosures, revealing significant contributions to its revenue, the lack of surprises in its longer-term financial framework and the potential narrowing of its consumer payments growth compared to market spending were notable considerations. Visa’s strategic focus on diversifying its revenue streams and increasing transaction yields is promising, but these efforts are not yet seen as significantly altering the current investment thesis, leading to the Hold rating.
Kupferberg covers the Technology sector, focusing on stocks such as Shift4 Payments, Fidelity National Info, and Fiserv. According to TipRanks, Kupferberg has an average return of 0.2% and a 55.06% success rate on recommended stocks.