Oppenheimer Raises Target On Visa By $5 To $90, Cites Closing Of Visa Europe Purchase

In a recent report, analysts at Oppenheimer updated their estimates for Visa Inc V, seeking to reflect the impending close of the acquisition of Visa Europe — which the firm anticipates will be announced before the end of June.

Last Friday, the payments technology company said that the European Commission had approved the deal — after the firms involved amended their contract to eliminate the earn-out portion of the consideration, allowing the transaction to move forward.

As per Oppenheimer’s research note, the analysts continue to believe the combination of Visa Europe “will prove highly strategic and accretive.” The experts pointed out they see “significant latitude to increase V Europe's revenue yield over time.”

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Currently trading at approximately 23.5 times the Oppenheimer’s revised (including Visa Europe) 2017 EPS estimate, shares look attractive, the report concluded. Consequently, the firm decided to reiterate its Outperform rating on the stock, raising its price target from $85 to $90.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.