William Blair analyst Andrew Jeffrey has reiterated their bullish stance on V stock, giving a Buy rating yesterday.
Andrew Jeffrey has given his Buy rating due to a combination of factors highlighting Visa’s strategic transformation and market leadership. Visa’s shift from a consumer-payments company to a diversified platform with a focus on value-added services and new payment flows is seen as a key driver for its projected revenue growth of 9%-12%. This growth is supported by a robust internal execution and significant investments in technology, which are expected to enhance Visa’s financial performance, particularly in terms of adjusted EPS growth.
Visa’s core payments business, which constitutes about 70% of its revenue, benefits from the ongoing transition to electronic payments and technological advancements like tokens and contactless payments. This sector has shown a strong growth trajectory, with Visa’s global consumer payments volume outpacing consumer spending growth. Additionally, the expansion of Visa’s value-added services and commercial and money movement segments further strengthens its position. These segments have demonstrated impressive growth rates, contributing to Visa’s overall revenue and enhancing customer relationships, thereby justifying the Buy rating.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $382.00 price target.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of V in relation to earlier this year.