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Investing.com --Evercore ISI initiated coverage on Visa Inc (NYSE:V), Mastercard Inc (NYSE:MA), and PayPal Holdings Inc (NASDAQ:PYPL) with In Line ratings, viewing the payments leaders as defensive plays in a volatile macro environment but noting valuation sensitivities and execution risks.
Evercore sees Visa as a defensive stalwart, Mastercard is preferred on valuation while PayPal’s turnaround depends on execution.
Visa’s long-term growth model remains intact, Evercore said, assigning a $330 price target, about 5% above its April 4 close.
“Like a fine wine, Visa’s story gets better with age,” the analysts wrote, citing Visa’s consistent formula of network expansion, product additions, and pricing leverage.
Visa’s stock has held up best among peers, there is still “decent upside” from current levels and expects the shares to continue outperforming defensively if caution prevails in the broader market.
Key growth drivers are Visa’s value-added services (VAS) and commercial/B2B initiatives like Visa Direct.
Mastercard was also rated In Line, with a $550 price target implying 12% upside.
Evercore said it prefers Mastercard over Visa near term, noting a narrower price-to-earnings spread and relative underperformance year-to-date.
“Both the tortoise and the hare – slow and steady plus opportunities for growth,” the analysts wrote, highlighting Mastercard’s stronger VAS penetration and historically faster top-line growth despite its smaller scale.
The firm added that Mastercard’s shares, while more volatile than Visa’s, should remain a relative outperformer and could benefit more when markets turn, albeit likely lagging more deeply discounted fintech names in a rebound.
PayPal also received an In Line rating, with a $65 target suggesting 11% upside.
While Evercore acknowledged PayPal’s large-scale consumer and merchant assets, it pointed to weak execution and macro sensitivity, particularly in its Branded Checkout segment.
The firm views PayPal’s recent investor day as a step in the right direction, praising the strategy’s clarity and the leadership team under CEO Alex Chriss. However, with macro conditions deteriorating, Evercore expects guidance to be revised down, in line with peers.