Evercore raised its price targets Monday on Visa Inc V and Mastercard Inc MA.
Analyst Dave Togut forecasted that the eventual sale of Visa Europe to Visa Inc will be accretive to Visa Inc by impacting EPS +3 percent within 1 year of a sale and +5 percent accretive in year two.
Visa Europe holds a put option which, if exercised, will require Visa Inc to buyout Visa Europe. Togut valued the Put option at $13 billion and felt that significant cost savings would result from the combined companies.
The price target for Visa was raised from $261 to $304 based on 25x 2016 estimated EPS of $12.15. Mastercard's price target was raised to $110.
Visa, Inc. recently traded at $258.12, down 0.03 percent.
Mastercard Inc recently traded at $87.10, down 0.21 percent.
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