Cantor Sings the Praises of Visa (V) on Back of Strong Earnings and Outlook

Shares of Visa (NYSE:V) are up nearly 5% in Thursday’s trading session, after the credit card giant reported fiscal second-quarter profit and sales that beat expectations, and raised its growth outlook. Specifically, Visa reported strong revenue of $5.07 billion, topping consensus estimate of $4.81 billion. Adjusted EPS were $1.11, compared to consensus estimates of of $1.01, representing 30% y/y growth.

After better-than-expected results, the company has raised FY18 revenue growth expectations to low double-digits with a ~1% currency tailwind, up from the previous guidance of high-single digit growth, with a projected 0.5-1.0% FX tailwind.

Cantor analyst Joseph Foresi commented, “International revenues were better than expected, and Visa noted it was seeing continued global economic improvement and momentum. Incentives were lower than anticipated, aiding the top-line beat.”

The analyst added, “We like Visa’s opportunity to capitalize on the global conversion of cash into credit, international opportunities, and digital payment tailwinds. Results for 2QFY18 were above expectations, and Visa raised FY18 (ending September 2018) guidance. We remain attracted to Visa’s dominant position in the global card network market and to its strong, recognizable international brand.”

As such, Foresi reiterates an Overweight rating on V shares, with a price target of $141, which implies an 11% upside from current levels. (To watch Foresi’s track record, click here)

The rest of Wall Street echoes Foresi’s bullish play, as TipRanks analytics exhibit V as a Strong Buy. Out of 17 analysts polled in the last 3 months, 15 are bullish on Visa stock while 2 remain sidelined. With a return potential of nearly 14%, the stock’s consensus target price stands at $144.44.


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