Visa’s Strong Financial Performance and Strategic Positioning Justifies Buy Rating and Target Price Increase

In a report released today, Rufus Hone from BMO Capital maintained a Buy rating on Visa (V – Research Report), with a price target of $380.00.

Rufus Hone has given his Buy rating due to a combination of factors that highlight Visa’s strong financial performance and strategic positioning. Despite some concerns about consumer and business confidence, Visa has maintained stable payment volume and transaction trends. The company’s cross-border volume growth has slowed slightly, but this has been counterbalanced by significant growth in its Value-Added Services (VAS), which increased by 22% year-over-year.
Visa’s financial results for the second quarter of fiscal year 2025 exceeded expectations, with adjusted earnings per share surpassing consensus estimates. This outperformance was largely driven by lower taxes and stronger-than-anticipated VAS revenues. Additionally, Visa’s broad diversification and robust VAS momentum, particularly in areas like Issuing Solutions and Advisory, contribute to its resilience and growth potential. Consequently, Rufus Hone has raised the target price for Visa, reflecting confidence in its enduring revenue and earnings growth prospects.

According to TipRanks, Hone is a 4-star analyst with an average return of 9.6% and a 63.64% success rate. Hone covers the Financial sector, focusing on stocks such as Visa, PayPal Holdings, and Western Union.

In another report released today, Barclays also maintained a Buy rating on the stock with a $396.00 price target.