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Why Visa's Big Earnings Beat Could Lead Apple Shares To $200

Why Visa's Big Earnings Beat Could Lead Apple Shares To $200
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Visa Inc (NYSE: V) shares were trading more than 6 percent higher in Thursday's after-hours session.

The catalyst for the rise is a strong earnings beat, with Q3 EPS coming in at $0.74 compared to $0.59 estimates. The company also beat on sales ($3.5 billion versus $3.37 billion expectations).

The credit card company's beat might be a positive catalyst for another pretty big company: Apple Inc. (NASDAQ: AAPL).

"I do think Visa and MasterCard could see pretty solid incremental business from Apple Pay," Tech Stock Strategist Sean Udall told Benzinga. "It's just another factor out there that's going to proliferate the use of credit card transactions."

Apple joined up with Visa and Mastercard Inc (NYSE: MA) in the fall of 2014. As the Apple website defines it: "contactless payment technology and unique security features built right into the devices you have with you every day...use your iPhone, Apple Watch, or iPad to pay in a simple, secure, and private way."

Related Link: Apple Pay Exclusive Discounts Are 'Entirely Possible'

Since its launch last year, Apple Pay has been accepted with a plethora of retail and restaurant outlets.

"I think part of the Visa beat…I think it's partially Apple Pay. Even if it's 5 or 10 or 15 percent of the Visa beat, that's huge! Get ready for $180-$200 stock on Apple."

Back in January, when Apple Pay was only used in the U.S., it "accounted for two of every three dollars spent through contactless payments on Visa, Mastercard, and American Express since the service launched in October, Apple CEO Tim Cook said."

Shares of Visa traded recently at $76.50, up 6.7 percent.

Louis Bedigian contributed to this report.

Latest Ratings for V

Feb 2018BarclaysMaintainsOverweightOverweight
Feb 2018Morgan StanleyMaintainsOverweightOverweight
Feb 2018PiperJaffrayMaintainsOverweightOverweight

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Posted-In: Analyst Color Earnings Long Ideas News Top Stories Exclusives Analyst Ratings Movers Best of Benzinga


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