After Visa announced a proposal that would provide liquidity to Class B holders, namely banks from pre-IPO, by allowing them to convert half of the $96B in Class B shares into tradable Class C shares with lock-up provisions, Jefferies said the firm would expect “a modest overhang” from the forthcoming sale pressure if the proposal is adopted. The firm estimates the potential for $350M additional average daily volume from the selling, which it calls “significant” relative to about $1B in average daily volume over the last 30 days. Jefferies has a Buy rating and $280 price target on Visa shares.
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