Visa Inc. (NASDAQ:V) stock is on the rise Thursday after Bank of America Securities upgraded its rating on the stock.
- Visa stock is among today’s top performers. What’s driving V stock higher?
What To Know: Analyst Mihir Bhatia upgraded Visa from neutral to buy and announced a price target of $382, citing high growth in key financial metrics like earnings-per-share (EPS), revenue and operating margins.
Bhatia said Visa is well-positioned to manage the shift from card-based payments to stablecoins, adding that merchants, who are Visa’s customers, will “continue to prioritize seamless checkout.”
The BofA Securities analyst said that Visa is one of six companies in the S&P 500 that produced more than 10% revenue growth, double digit EPS growth and operating margins greater than 50% over the past year, adding that it is one of two companies that has delivered these metrics annually since 2021.
Another factor in the upgrade was Visa’s “compelling” lowest relative valuations. The stock is now trading at 22 times forward earnings. Despite a looming $38 billion settlement between Visa, Mastercard and payment system merchants, Bhatia said the company has a track record of navigating litigation without impacting the business meaningfully.
“Following recent underperformance, we believe Visa shares offer very attractive return potential,” the analyst wrote in a note to clients.
According to Benzinga data, the company has beat expectations for quarterly revenue and profits for the past five quarters.
V Price Action: Visa shares were up 4.98%, trading at $341.96 at publication time on Thursday, according to Benzinga Pro.
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