Goldman Sachs Reiterates Bullish View on Visa

“We reiterate our bullish view on V shares,” Goldman Sachs wrote in a report focusing on Visa V. “We expect that the combination of a strong growth profile and a further valuation reset to more closely reflect its long-term growth of 17% (vs. CY2012 P/E of 14.4X our EPS estimate of $6.11) will drive outsized stock returns. Longer term, we remain focused on the secular growth of electronic payments, emerging global consumer, and mobile payments. “From a fundamental perspective, we believe that V's industry-leading ROC (44% in FY11E), robust annual FCF ($2 bn+), and capital allocation efforts, support our view for a premium valuation. There are no changes to our estimates or price target.” Visa closed Wednesday at $88.20.