Trump announces trade deal with EU following months of negotiations
On Monday, Truist Securities analysts initiated coverage on Visa stock, assigning a Buy rating and setting a price target of $400.00. The analysts view Visa as a defensive stock, citing its capacity for mid-single to high-single-digit earnings per share growth even during economic downturns. This resilience is attributed to Visa’s business model, which includes value-added services and fees related to consumer staples payments. According to InvestingPro data, Visa’s impressive 97.77% gross profit margin and "GREAT" financial health score validate this defensive positioning. The company has maintained dividend payments for 18 consecutive years, demonstrating consistent financial strength.
Analysts from Truist Securities expressed confidence in Visa’s ability to maintain earnings growth through strategic measures. These include reducing marketing expenses and engaging in stock buybacks. They acknowledged a potential risk from a slowdown in cross-border volume, which could lead to earnings projections slightly below market expectations. Supporting this outlook, InvestingPro data shows Visa’s revenue growing at 10.19% with 14 analysts revising earnings upward for the upcoming period. The stock is currently trading near its 52-week high of $369.15, suggesting strong market confidence.
The price target of $400 is based on a 30 times multiple of the analysts’ 2026 earnings per share forecast. The analysts expect a price-to-earnings growth ratio of approximately 2.3, with an anticipated earnings growth rate of around 13% in 2027.
Visa’s defensive characteristics, according to Truist Securities, make it a compelling option for investors seeking stability. The analysts anticipate that the market will view Visa as a safe investment, potentially driving its valuation higher relative to other stocks.
Visa, listed on the New York Stock Exchange under the ticker (NYSE:V), remains a focal point for investors interested in stable growth opportunities amidst economic uncertainties.
In other recent news, Visa Inc . has announced the appointment of Antony Cahill as the new CEO of its European operations, marking a significant leadership change as Charlotte Hogg departs after eight years. Citi has maintained its Buy rating on Visa, with a price target of $396, citing the company’s innovation and product development as key factors for potential sustained growth. Visa has also launched the Visa Commercial Integrated Partners program, designed to streamline fintech integrations by providing advanced APIs for easier connection to Visa’s commercial offerings. This initiative aims to reduce development time and costs for fintechs, enhancing payment experiences for customers.
Additionally, Visa has introduced Visa AR Manager, a tool to automate virtual card transactions for suppliers in the U.S., simplifying invoice reconciliation and reducing operational costs. The company has also partnered with Webull, integrating Visa Direct into the platform to enable real-time money movement for users, significantly speeding up fund transfers compared to traditional methods. This collaboration is expected to enhance Webull’s competitive edge in the fintech space by improving customer experience. These developments underscore Visa’s commitment to innovation and its strategic efforts to enhance its service offerings globally.
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