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Investing.com - Freedom Capital Markets downgraded Visa (NYSE:V) from Buy to Hold and lowered its price target to $345.00 from $400.00 on Friday. According to InvestingPro data, Visa currently trades at a P/E ratio of 33.29x, suggesting a premium valuation relative to near-term earnings growth.
The downgrade comes despite Visa reporting results that exceeded both analyst expectations and the company’s own guidance. Freedom Capital Markets noted that GAAP earnings were negatively impacted by litigation reserves, which limited bottom-line growth.
On a currency-adjusted basis, Visa’s total transaction volume expansion improved compared to the previous quarter and remains solid. The company reaffirmed its full-year guidance for fiscal 2025 but issued a more conservative outlook for Q4 relative to analyst expectations.
Strategically, Visa continues to prioritize scaling its digital payment solutions and value-added services segment, growing Visa Direct, and strengthening its international payments network.
Freedom Capital Markets’ new price target of $345 is based on a 24.5x P/E multiple and forward EPS of $14.1 per share, according to analyst Mikhail Paramonov.
In other recent news, Visa Inc . reported robust fiscal third-quarter results for 2025, with earnings per share (EPS) of $2.98, surpassing analyst expectations of $2.84. The company’s revenue also exceeded projections, reaching $10.2 billion compared to the anticipated $9.84 billion. In another development, Visa launched a global Cybersecurity Advisory Practice to help clients tackle emerging cybersecurity threats, appointing Jeremiah Dewey as the new global head of cyber products. Additionally, Visa expanded its fleet payment capabilities by incorporating Google Pay tokenization, enhancing the functionality of fleet data tags with digital payments.
Keefe, Bruyette & Woods reiterated their Outperform rating on Visa stock, setting a price target of $400.00. The research firm cited "solid trends" for Visa, despite some short-term variability in comparisons. These developments reflect Visa’s ongoing efforts to innovate and strengthen its market position.
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