2024-04-29 10:00:00 ET
Summary
- V remains a Buy, despite the stock's impressive rally by +27.1% since the October 2023 bottom, well outperforming the wider market at +23.3%.
- The fintech has reported robust performance metrics and expanding profit margins, significantly aided by the accelerating growth in new flows segment, e-commerce, and Tap to Pay digitization.
- V continues to return excellent value to long-term shareholders, through double-digit dividend growth and sustained share repurchases.
- Combined with the management's promising commentary surrounding consumer spending, corroborated by JPM's 2024 guidance, we believe that V remains a Buy at every pullback.
We previously covered Visa ( V ) (VISA:CA) in October 2023, discussing its dominance in the global payment processor market, with it accounting for 39% of all payment card purchase transactions globally in 2022.
Despite the uncertain macroeconomic outlook and the intensified write-downs/charge-offs by credit card issuers, we had believed that V continued to offer an attractive risk/ reward ratio, further aided by the management's promising forward guidance....
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Visa: The Payment 'Toll Booth' Outperforms Again - Maintain Buy