Zinger Key Points
- Visa beats Q1 earnings and revenue expectations, with a 16% rise in cross-border volumes and strong holiday spending.
- Analysts raise price targets, but concerns over FX headwinds and regulatory risks keep some ratings neutral.
Visa Inc. V shares are trading marginally higher on Friday.
Yesterday, the company reported quarterly earnings of $2.75 per share, which beat the analyst consensus estimate of $2.66. Quarterly revenue came in at $9.51 billion, which beat the analyst consensus estimate of $9.34 billion.
Total cross-border volume on a constant dollar basis increased by 16% in the quarter.
Here are the analysts’ take on the stock:
- BofA Securities analyst Jason Kupferberg reiterated the Neutral rating on the stock, raising the price forecast to $363 from $331.
- RBC Capital Markets analyst Daniel R. Perlin reiterated the Outperform rating on the stock, raising the price forecast to $395 from $322.
- Goldman Sachs analyst Will Nance maintained the Buy rating on Visa, raising the price forecast to $384 from $346.
- Oppenheimer analyst Rayna Kumar reiterated the Outperform rating on Visa, raising the price forecast to $390 from $375.
- Keefe, Bruyette & Woods analyst Sanjay Sakhrani reiterated the Outperform rating on the stock, with a price forecast of $400 from $360.
BofA Securities: The analyst notes that the company’s EPS growth guidance is driven by the first quarter upside and an updated 2025 tax rate assumption. Despite Visa’s strong business model, the analyst maintains a Neutral rating due to concerns over top-line growth, potential litigation/regulatory risks.
RBC Capital Markets: The analyst attributes the strong quarter to solid holiday spending, elevated FX volatility, and strong cross-border travel.
This, along with increased FY25 net revenue and adjusted EPS guidance, sets a positive backdrop for Visa heading into its February 20th Investor Day.
Goldman Sachs: The analyst projects Visa’s strong first quarter results to support the stock, citing accelerated volumes, raised guidance, and upbeat consumer outlook.
Despite the strong performance, a tempered share price reaction is anticipated. The analyst expects to focus on Visa’s VAS strategy and the upcoming Investor Day.
The analyst remains optimistic on Visa and the payments sector, citing stabilized post-COVID spending patterns and easing headwinds.
Oppenheimer: Per the analyst, Visa is well-positioned to capture market share from the ongoing shift from paper-based payments to cards, driving high-single-digit volume growth over the next three years.
Kumar highlights that Visa is a “top 2025” idea.
Keefe, Bruyette & Woods: The analyst highlights Visa’s strong quarter with ongoing volume acceleration, especially in discretionary spend categories, and notes potential upside as the year progresses, with improved constant currency outlook beyond second quarter not fully reflected in guidance.
The analyst notes Visa’s improved constant currency outlook but cautions that FX headwinds may limit upside.
A lower tax rate boosts 2025 EPS, with potential for further upside if strong volume trends continue beyond the second quarter.
Price Action: V shares are trading higher by 0.36% to $344.30 at last check Friday.
Image from Shutterstock.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
