CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our target price of $325, up $35, values shares at 28.3x our FY 25 (Sep.) EPS, discounted to V’s 5-year historical average of 31.9x, given the higher rate environment and moderately slower growth expectations. We decrease our FY 24 EPS estimate to $10.13 from $10.16 and lower FY 25’s to $11.49 from $11.61. Visa reported Dec-Q results, with net revenues of $8.63B (+9% Y/Y) and adj-EPS of $2.41, surpassing consensus estimates of $8.56B and adj-EPS of $2.34. Payment volume (+8%) slowed in the quarter as strength in Europe and LAC was met with weakness in the U.S. and Asia Pacific. Unfortunately, management highlighted that January is off to a rocky start in the U.S. (+4%), but we see this as a low water mark as severe weather conditions impact activity. Cross-border volume (+16%) continued its momentum, with activity now up 42% from 2019 levels vs. 39% in the previous quarter. Looking over the next twelve months, we think outperformance could come from China as volumes are improving but remain below 2019 levels.