Morgan Stanley on Visa
Visa (V) is included in Morgan Stanley’s (MS) “secular growth” stock picks. The company is a major player in the online payment platform system. According to James Faucette, a Morgan Stanley analyst, “Visa is a prime beneficiary of the ongoing secular shift from cash to electronic forms of payment, globally. The company’s moat within the payments ecosystem positions it well to partner with a host of digital enablers to be a net beneficiary of the changing technology environment (e.g. online payments and mobile payments.”
Many people worldwide are adapting to quick payment procedures, which is positive for online payment platform systems. According to estimates by Morgan Stanley, Visa’s sales could rise 13.0% annually through 2018, and its the earnings could rise 15.0% annually.
Visa is currently trading at $81.58. The stock’s 52-week high is $83.79, and its 52-week low is $66.12. Its current price-to-earnings ratio is 34.67x. The stock has a beta of 1.1. On a year-to-date basis, the stock has risen 7.8% as of October 18, 2016. Over a two-year period, it has risen 53.0%. Currently, Visa is trading 1.4% below its 20-day moving average and 2.0% above its 100-day moving average.
Other credit services stocks such as American Express (AXP) and Citigroup (C) returned -28.4% and -4.0%, respectively, over a two-year period. The S&P 500 Index (SPY) (QQQ) rose 10.4% during the same period.
In the next part of this series, we’ll take a look at Morgan Stanley’s view of Starbucks (SBUX).