Visa’s Strategic Position and Consumer Loyalty Justify Buy Rating Amid Stablecoin Concerns

William Blair analyst Andrew Jeffrey has reiterated their bullish stance on V stock, giving a Buy rating on June 5.

Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight Visa’s strong position in the evolving payments landscape. He believes that despite concerns over major retailers potentially launching their own stablecoins, these digital currencies are not well-suited for business-to-consumer commerce. Consumers are accustomed to the convenience, security, and benefits of traditional cards, which stablecoins currently do not match.
Furthermore, there is no universal standard for stablecoins, making them less appealing for widespread consumer adoption. Visa is proactively building infrastructure to integrate stablecoins into their existing systems, which positions them to continue their partnerships with banks and potentially lower merchant acceptance costs. Additionally, Visa’s management views stablecoins as an opportunity rather than a threat, emphasizing their capabilities in enabling stablecoin transactions and cross-border payments. Overall, Jeffrey sees Visa’s strategic initiatives and consumer loyalty to traditional payment methods as strong indicators for continued success, justifying his Buy rating.

In another report released on June 5, Mizuho Securities also upgraded the stock to a Buy with a $425.00 price target.