Why Visa Remains a Safe Bet Amid Global Economic Uncertainties: Analyst

Wedbush analyst Moshe Katri reiterated Visa Inc V with an Outperform and a $270 price target.

On Wednesday, V provided updated volume data for July and August. 

In general, U.S. Payments volume data suggests slight growth improvements month-to-month, with quarter-to-date in-line performance with the June quarter, while chargeback volume points to consistent performance for both months and with June quarter's levels. 

Also Read: How Visa And Mastercard's New Fees Hike Are Impacting Your Wallet And Local Businesses!

U.S. Payments volume trends are in line with PSCU's published data. Continue to view Visa as a defensive play, especially under a scenario of a possible macro-global slowdown. 

Visa announced volume and transaction data for July and August 1-28, 2023. As previously disclosed, in March 2022, Visa suspended its operations in Russia, and therefore, Russia-related volume and transaction data are not part of results from April 2022 through August 2023. 

August U.S. payments volume on a YOY basis grew 7%. Credit grew 6%, and Debit grew 7%. 

The volume compares with June's 6% growth levels. August CNP volume on a YOY basis was up 9%, CNP volume excluding travel was up 9%, and card present volume was up 4%. 

These levels were essentially in line with the June quarter's levels. August payments volume YOY growth for vital international markets improved slightly relative to July 2023's YOY growth (June quarter's levels reached 12%). 

CB total and excluding intra-Europe transactions posted YOY growth of 20% and 17% for July, respectively, and 20% and 18% for August, respectively. 

This compares with 20% and 17% for the June quarter. August travel cross-border volume into and from our Asia Pacific region and into the U.S. continued to improve relative to 2019 levels. 

July's August's global processed transactions grew 10% YOY, also in line with the June quarter's levels. 

Price Action: V shares traded higher by 0.13% at $246.54 on the last check Thursday.