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This Is Why Analysts Love Visa Stock

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Strong growth potential

As we’ve discussed in this series, this year, Visa (V) is expected to be boosted by its business fundamentals, increased payment digitalization, and higher oil prices. Of the 36 analysts covering the payment giant’s stock, 15 (41.7%) recommend “strong buy,” 17 (47.2%) recommend “buy,” and four (11.1%) recommend “hold.”

Analysts’ ratings may improve with the economy. They expect Visa to reach $140.09 in a year, implying a 7.2% rise from the stock’s current price of $130.72.

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Analysts’ views on peers

Of the 27 analysts tracking Discover Financial Services (DFS), nine recommend “strong buy,” ten recommend “buy,” and eight recommend “hold.” In April, analysts’ ratings were similar, though one had recommended “sell” and seven had suggested “hold.”

Analysts’ target prices for peers (XLF) Discover, American Express (AXP), and Mastercard (MA) are $87.12, $109.11, and $207.68, respectively.

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