Keefe, Bruyette & Woods reiterates Outperform rating on Visa stock

Published 30/07/2025, 16:32
Keefe, Bruyette & Woods reiterates Outperform rating on Visa stock

Investing.com - Keefe, Bruyette & Woods has reiterated an Outperform rating on Visa (NYSE:V) stock with a price target of $400.00.

The research firm noted "solid trends" for the payment processor, despite some near-term variability driven by comparisons. KBW observed that Visa stock weakened slightly in after-hours trading, potentially due to implied fourth-quarter deceleration.

The firm suggested this deceleration might be underwhelming for investors given the premium valuation Visa commands, approximately 31 times 2026 earnings per share.

KBW emphasized that Visa’s underlying business drivers remain largely intact, with the exception of normalizing foreign exchange volatility. The firm also highlighted pricing as a likely continued tailwind that could help Visa potentially exceed expectations.

The research firm described Visa as "one of the highest quality names with the strongest visibility on medium-term earnings power" and identified it as a top investment idea in the payments space.

In other recent news, Visa Inc . reported impressive fiscal third-quarter results for 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $2.98, exceeding the projected $2.84. Additionally, Visa’s revenue reached $10.2 billion, outperforming the anticipated $9.84 billion. These results indicate strong performance and have been well-received by investors. Furthermore, Visa announced the expansion of its fleet payment capabilities by incorporating Google (NASDAQ:GOOGL) Pay tokenization and push-to-wallet functionality. This enhancement addresses previous limitations in fleet data tags and allows for seamless transmission of fleet-specific data during contactless payments. The development is expected to improve the efficiency and functionality of digital payments for fleet users. Visa’s recent achievements highlight its commitment to innovation and maintaining a competitive edge in the payment industry.

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