In a report released on February 21, Rufus Hone from BMO Capital maintained a Buy rating on Visa (V – Research Report), with a price target of $370.00.
Rufus Hone has given his Buy rating due to a combination of factors that highlight Visa’s strong growth potential and strategic positioning. Visa’s Investor Day presentations addressed investor concerns by showcasing the remaining opportunities in consumer payments, despite the increasing digitalization of markets. Visa’s strategic initiatives, such as Visa Protect for account-to-account (A2A) payments, position the company to thrive in non-carded payment ecosystems.
Furthermore, Visa’s forecasted revenue growth remains robust, with expectations of 9-12% longer-term revenue growth, supported by shifts in their revenue mix towards higher-growth segments like Commercial & Money Movement solutions and Value-Added Services (VAS). The company’s ability to capture a significant share of the $41 trillion consumer payment volume opportunity, alongside the expansive $520 billion addressable revenue potential in VAS, underscores Visa’s capacity for sustained growth. Rufus Hone thus believes Visa’s competitive position and revenue diversification make it a compelling core holding within the U.S. financial sector.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $382.00 price target.
V’s price has also changed moderately for the past six months – from $268.200 to $348.530, which is a 29.95% increase.