J.P. Morgan Maintains Overweight on Visa (V)

J.P. Morgan is out with its report today on Visa V, maintaining Overweight. In a note to clients, J.P. Morgan writes, "Visa reports F2Q results AMC on May 5th. We see little risk to F2Q Street estimates ($1.20), since Visa reports core volume-based revenue (36% of total) on a lag, although we think actual results could come in below our Street high estimates (JPMe $1.27) as Visa likely spent some of its fundamental upside on growth investments (e.g. mobile, e-commerce, int'l). Bottom line – fundamentals remain fine and we will watch investment spending (which we applaud) - F2Q should be a non-event as the last reported qtr. (hopefully) before the Durbin overhang is lifted. We think shares can continue to drift higher in the near-term in anticipation of a Durbin delay or a more favorable Fed ruling in late July, although we're not wholly convinced either scenario actually plays out. We remain Overweight and maintain our Dec 2011 price target of $85." Shares of V closed Friday at $78.12, up 0.59% from Thursday's close.