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Truist Securities reiterated its buy rating and $400.00 price target on Visa (NYSE:V) stock following a 5% decline on Friday driven by stablecoin-related headlines. The financial services giant, with a market capitalization of $672 billion and impressive 97.8% gross margins, has seen its stock rise 31% over the past year despite recent volatility.
The research firm characterized the market’s reaction as an "overreaction," noting that it does not expect stablecoins to significantly impact card payments. Truist pointed out that Visa actually maintains a "prominent role" in providing cryptocurrency and stablecoin on-ramps and off-ramps.
Beyond the stablecoin concerns, Truist expressed a positive outlook on Visa’s near-term prospects, suggesting that Street forecasts for calendar year second-quarter volume growth appear conservative.
The firm also indicated that Visa’s financial projections could improve following recent U.S. dollar depreciation, potentially leading to upward revisions in analyst estimates.
Truist highlighted Visa’s current valuation relative to the S&P 500 as attractive compared to historical levels, reinforcing its confidence in maintaining the buy rating despite the recent share price decline.
In other recent news, Visa has been the focus of several notable developments. Mizuho (NYSE:MFG) analysts upgraded Visa’s stock from Neutral to Outperform, raising the price target to $425, citing optimism in cash-to-card growth. This upgrade reflects confidence in Visa’s potential for sustained growth in card usage, particularly in the U.S. Furthermore, Truist Securities initiated a Buy rating on Visa with a price target of $400, highlighting its resilience and capacity for earnings growth even during economic downturns.
In leadership news, Visa announced Antony Cahill as the new CEO of its European operations, succeeding Charlotte Hogg. Additionally, Andrew Torre has been appointed as the president of Visa’s value-added services division. On another front, Barclays (LON:BARC) reiterated its Overweight rating on MasterCard, maintaining a $650 price target, and expressed skepticism about stablecoins’ immediate impact on established payment networks like Visa. Barclays suggested that stablecoin concerns are overblown, recommending investors buy MasterCard shares during any market weakness. These recent developments underscore ongoing strategic shifts and analyst confidence in Visa and MasterCard amid evolving market dynamics.
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