V - Visa Shines In Q1 2024: Why I Think It's A Real GARP Opportunity
2024-02-05 22:44:13 ET
Summary
- Visa's Q1 2024 earnings demonstrate strong revenue growth, operating margin expansion, and continued diversification into value-added services.
- Visa's focus on expanding its reach, enhancing service capabilities, and creating value for stakeholders positions it well for future success in the digital payments industry.
- A base-case valuation calculation suggests an 8% undervaluation in shares, making it a potentially attractive growth at a reasonable price (GARP) choice.
- Visa still faces significant regulatory, cyber security, and competitive risks in the marketplace along with a potentially difficult macro environment in 2024.
- Buy rating reiterated.
Investment Thesis
Visa ( V ) continues to be the leading player in the digital payments processing industry with a solid Q1 of 2024 illustrating the firm’s earnings power.
Solid topline revenue growth has been complemented by great operating margin expansion and continued diversification into value-added services. Visa’s quantitative successes come despite a difficult macroeconomic environment and softening consumer spending outlook.
Current valuations suggest an 8% undervaluation in shares given current 2024 EPS estimates with the firm therefore potentially being a compelling GARP choice at present time....
Visa Shines In Q1 2024: Why I Think It's A Real GARP Opportunity