Visa Stock Jumps After Q4 Earnings Beat; Target Price $263

Visa shares jumped over 5% in after-market trading on Thursday after the world’s largest card payment company reported better-than-expected earnings and revenue as spending volumes increased during the holiday quarter due to more international travel and e-commerce.

The global technology payment company reported quarterly adjusted earnings of $1.81​​ per share, beating the Wall Street consensus of $1.70 per share. The company’s revenue jumped over 24% to $7.06 billion from a year ago. That was above the market expectations of $6.80 billion.

“Visa’s (V) F1Q results beat our above consensus estimates across the board, with key metrics improving sequentially. Internal company assumptions now contemplate high-end of high-teens revenue growth for FY22 (vs. high-end of mid-teens prior) and a 10 pt improvement in cross border travel volumes (now 90% of 2019 levels by YE). We remain bullish,” noted George Mihalos, equity analyst at Cowen.

Visa stock rose over 5% to $216.25 in after-market trading on Thursday. The stock rose slumped nearly 5% so far this year after falling about a per cent in 2021.

Analyst Comments

“Faster travel recovery and faster cross-border e-commerce growth combine to improve prospects for faster revenue and EPS growth post-normalization,” noted James Faucette, equity analyst at Morgan Stanley.

“Visa (V) is one of our preferred stocks, as it is a key beneficiary of resilient global consumer spend growth, the ongoing shift from cash to electronic payments, and broadening merchant acceptance. Global Personal Consumption Expenditure and secular growth drivers should support low double-digit revenue growth in the near-to-medium term. We see an upside opportunity from the faster-than-expected recovery of travel and the sustained strength of cross-border e-commerce. Continued investment in longer-term initiatives (faster payments, P2P, B2B) and partnerships continue to increase its TAM and offer an opportunity for compounding double-digit earnings growth for the foreseeable future.”

Visa Stock Price Forecast

Twelve analysts who offered stock ratings for Visa in the last three months forecast the average price in 12 months of $263.58 with a high forecast of $305.00 and a low forecast of $210.00.

The average price target represents a 27.86% change from the last price of $206.15. Of those 12 analysts, 10 rated “Buy”, two rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $283 with a high of $342 under a bull scenario and $180 under the worst-case scenario. The investment bank gave an “Overweight” rating on the payment company’s stock.

Several other analysts have also updated their stock outlook. Wedbush raised the target price to $270 from $240. Evercore ISI lifted the target price to $312 from $308. Raymond James upped the target price to $281 from $265. Piper Sandler increased the target price to $283 from $275.

Technical analysis suggests it is good to sell as 100-day Moving Average and 100-200-day MACD Oscillator signals a strong selling opportunity.

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