Bank of America Securities analyst Jason Kupferberg maintained a Hold rating on Visa (V – Research Report) yesterday and set a price target of $363.00.
Jason Kupferberg has given his Hold rating due to a combination of factors impacting Visa’s performance. While Visa reported solid revenue and margin growth, there were concerns about the deceleration in cross-border volume growth, particularly outside of intra-Europe transactions. This slowdown in high-yielding cross-border volume growth from 16% to 13% in the second quarter and expectations for stabilization at around 12% in the second half of the year raised caution.
Additionally, despite Visa’s strong business model and diversification, there are incremental concerns regarding top-line growth, potential litigation and regulatory risks, and the stock’s full valuation at approximately 27 times the projected earnings for fiscal year 2026. These factors, combined with the modest softening of assumptions around cross-border travel and some observed softness in sectors like airlines and lodging, contribute to the Hold rating, as the potential upside may be limited given the current valuation and market conditions.
According to TipRanks, Kupferberg is an analyst with an average return of -3.4% and a 49.19% success rate. Kupferberg covers the Technology sector, focusing on stocks such as Cognizant, Shift4 Payments, and Accenture.