UPDATE: Citigroup Upgrades Visa On Improvement in US Card Loan Growth
In a report published Monday, Citi analyst Donald Fandetti upgraded Visa, Inc. (NYSE: V) to Buy, raising its price target from $212.00 to $265.00.
According to the report, while expectations are more muted this year, analysts maintain their constructive view held since '09 on the card sector.
“Key fundamentals are healthy and we could start seeing some modest improvement in US card loan growth and card spend on the back of better consumer confidence and economic growth,” the report said. “AXP remains our top pick again in 2014 due to its balanced risk/reward and leverage to the wealth effect (followed by MA). We are upgrading V to Buy given 1) the unusual 25% relative share price under-performance vs. MA last year, 2) odds slightly in favor of a positive Fed debit exclusivity ruling, 3) potential for better US spend trends and 4) we are constructive on equities broadly. While we see a likelihood of better short-term performance at V (assuming the Fed wins their appeal), we still prefer MA shares on a longer-term basis.”
V closed Friday at $223.50 with shares trading up at 1.07 percent.
Latest Ratings for V
|Sep 2014||Bernstein||Initiates Coverage on||Outperform|
|Sep 2014||Piper Jaffray||Initiates Coverage on||Overweight|
|Sep 2014||Sterne Agee||Initiates Coverage on||Buy|
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