Visa Expects India To Become Next Brazil
Analysts at Susquehanna Financial maintain their "positive" rating on Visa Inc (NYSE: V). The target price for V is set to $113.
According to Susquehanna Financial, “...growth has improved in each of the last three months. February growth was highest in its cross-border service (+11% versus +7% in January)… Processed transactions grew at the same rate in February as January at +13%. These numbers generally align with company expectations, though were the trajectory to continue, they may start to exceed the high end of the range. Guidance was for revenue growth in the 11-15% range and op margins in the mid to high 50% range.”
Visa indicated that subsequent to the Cards Act, select issuers are again showing early enthusiasm for re-investing in credit programs. "Look for V to continue to pursue affluent programs in credit that are incentivized by rewards and geographic segmentation,” the analysts say. V stated that India has recently initiated a “Visa Certified” designation, which may promote the company’s interests in the country, the analysts add.
