Expert Outlook: Visa Through The Eyes Of 12 Analysts

Benzinga
Mar. 26, 2024, 05:01 PM

In the latest quarter, 12 analysts provided ratings for Visa (NYSE:V), showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 9 1 0 0
Last 30D 0 1 0 0 0
1M Ago 1 1 0 0 0
2M Ago 1 6 0 0 0
3M Ago 0 1 1 0 0

Analysts have set 12-month price targets for Visa, revealing an average target of $310.0, a high estimate of $335.00, and a low estimate of $265.00. This current average has increased by 6.01% from the previous average price target of $292.42.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of Visa's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
David Togut Evercore ISI Group Raises Outperform $335.00 $325.00
Trevor Williams Jefferies Raises Buy $320.00 $305.00
Donald Fandetti Wells Fargo Raises Overweight $325.00 $300.00
Raimo Lenschow Barclays Raises Overweight $319.00 $304.00
James Friedman Susquehanna Raises Positive $326.00 $300.00
Rayna Kumar UBS Raises Buy $315.00 $305.00
Daniel Perlin RBC Capital Raises Outperform $309.00 $290.00
Sanjay Sakhrani Keefe, Bruyette & Woods Raises Outperform $315.00 $305.00
Moshe Katri Wedbush Raises Outperform $280.00 $270.00
John Davis Raymond James Raises Outperform $311.00 $287.00
Dan Dolev Mizuho Raises Neutral $265.00 $243.00
Josh Beck Keybanc Raises Overweight $300.00 $275.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Visa. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Visa compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Visa's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Visa's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Visa analyst ratings.

Unveiling the Story Behind Visa

Visa is the largest payment processor in the world. In fiscal 2022, it processed over $14 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.

Unraveling the Financial Story of Visa

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining Visa's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.8% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Visa's net margin is impressive, surpassing industry averages. With a net margin of 56.64%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Visa's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 12.46%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 5.38%, the company showcases effective utilization of assets.

Debt Management: Visa's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.52.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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-0.64 (-0.23%)
Visa Inc.
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