Iris Gao, an analyst from DBS, maintained the Buy rating on Visa (V – Research Report). The associated price target was raised to $400.00.
Iris Gao has given her Buy rating due to a combination of factors that highlight Visa’s strong financial performance and strategic positioning. Visa’s adjusted net income for FY2Q25 surpassed analyst expectations, driven by an 8% increase in payment volumes, which benefited from robust consumer spending supported by wage growth and low unemployment. The company has also authorized a significant share repurchase plan, indicating confidence in its future prospects.
Visa’s core business is poised to benefit from the global shift towards digital payments, with a substantial opportunity as cash transactions still account for a large portion of global payments. The company’s Network of Networks strategy and Visa Direct platform open new avenues for growth in various payment flows, enhancing revenue through value-added services. Furthermore, Visa’s high operating margins and dominant market position, supported by its extensive network of merchants and cardholders, reinforce its competitive edge. Despite potential regulatory risks and economic uncertainties, Visa’s valuation and long-term growth prospects make it a compelling investment, justifying the Buy recommendation.
Gao covers the Financial sector, focusing on stocks such as PICC Property & Casualty Co, Visa, and American Express. According to TipRanks, Gao has an average return of 15.9% and a 76.19% success rate on recommended stocks.
In another report released on May 5, TD Cowen also maintained a Buy rating on the stock with a $380.00 price target.