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Will Analysts Stay Optimistic about Visa Stock?

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Aug. 2 2018, Updated 9:01 a.m. ET

Analysts’ ratings on Visa

In the fiscal third quarter, Visa (V) witnessed strong growth on a YoY (year-over-year) basis in all its primary business metrics: processed transactions, cross-border transactions, and payment volumes.

Visa’s ratings improved compared to the previous month. In July, 37 analysts were tracking Visa, 17 of whom recommended “buys,” four of whom recommended “holds,” and 16 of whom recommended “strong buys.” In June, 35 analysts were tracking Visa. Four gave it “holds,” 17 gave it “buys,” and 14 gave it “strong buys.”

A favorable macroeconomic environment benefits payment-processing companies mainly because it increases cardholder spending.

Wall Street analysts have given a one-year price of $157.18 on Visa, implying a rise of 15.2% from its current price of $136.48.

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Ratings on Visa’s competitors

Visa’s peer (IYF) Mastercard (MA) expects significant growth opportunities from the European region. Visa and Mastercard have expectations of strong dependence on cash from European consumers.

Consumer finance company Capital One Financial (COF) received “strong buy” ratings from ten analysts, four of whom gave it “holds,” one of whom suggested a “strong sell,” and nine of whom gave it “buys” in July.

Visa’s competitors have the following price targets for the next year:

  • Mastercard: $228.83
  • Capital One Financial: $115.38
  • American Express (AXP): $111.32
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