Monness Crespi reiterates a Neutral rating on Visa and continues to see fair value per share of $240 after Bloomberg reported the company is set to be charged in an antitrust case by the Department of Justice. This is an “immediate negative” to shares, the analyst tells investors in a research note. However, the firm cautions that these types of anti-trust cases are “notoriously known for long/winding paths in the U.S.” If the lawsuit results in curbed pricing on network switching activities, it “would meaningfully exacerbate our concerns regarding growth expectations in the near and longer-term,” says Monness.
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