Morgan Keegan Discusses Impact Of Durbin Amendment On Visa

Morgan Keegan is out with a research report on Visa V, as the final rules of the interchange cap fee were set yesterday. It has an Outperform rating and a $100 price target on shares. In a note to clients, Morgan Keegan writes, "Indirect impact to Visa and MasterCard (through increased rebates, network fees, and share) limited to net amount that issuers pay networks for services (a positive); Overall impacts represent an estimated 5% EPS drag for Visa in FY:12 (with a 3% EPS drag in FY:13 and FY:14) and 1% drag to EPS for MA in 2012 (with a 2% EPS drag in CY:13 and CY:14) - this is already factoring into our projections (timing is slightly more favorable than expected however)" Shares of V closed at $86.57, a gain of $11.29 or 15% yesterday.