Give Visa Credit, A Strong Q3 Bolstered By A Bright Outlook

In a mixed financial sector, Visa Inc V is shining, according to analysts from Normura Instinet and Barclays, which rate the stock Buy and Overweight, respectively.

Visa posted strong third-quarter earnings on Thursday, with $0.86 EPS and $4.6 billion in sales. Management also reaffirmed guidance for approximately 20 percent sales growth in fiscal 2017.

Nomura Instinet’s Bill Carcache raised his price target from $105 to $120, and Barclays’ Darrin Peller upped his to $114.

“This quarter’s results once again showcase the strength of [Visa’s] business model,” said Carcache in a note.

Carcache also raised his EPS estimates for the next two years by four cents each, to $3.33 for 2017 and $3.92 for 2018.

Peller noted that EPS gains were driven by a broad mix of strengths, but notably pricing synergies in Europe and a favorable tax rate.

The company did face pressure from tough forex volatility comps, but Peller believes they will start easing.

Visa shares continued to reach all-time highs mid-day Friday, breaking past $100.

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