Deutsche Bank Remains Bullish Following a Meeting with New Visa (V) CFO

Deutsche Bank reiterates a Buy rating and $70.00 price target on Visa (NYSE: V) following a meeting with the new CFO Vasant Prabhu. Vasant believes that the networks should price to value and not focus on competitors pricing.

Deutsche Bank analyst Bryan Keane commented on the meeting, saying, "Yesterday, we met with new Visa CFO Vasant Prabhu at the company’s headquarters in San Francisco who appears comfortable in his new role. Vasant reiterated his confidence in the model and Visa's ability to get better pricing for the value of its services as new business models arise in ecommerce and mobile payments (CFO believes market is underestimating the power of tokenization). We believe V can deliver low double digit cc rev growth, margin expansion and continue capital return to drive 15-20% EPS growth over the next five years. Revenue growth is expected to trough in 3Q15 due to the timing of incentives and reaccelerate to low double digits in 4Q15 powered by price increases (400bps annual tailwind in our view). Reiterate Buy."

For an analyst ratings summary and ratings history on Visa click here. For more ratings news on Visa click here.

Shares of Visa closed at $70.00 yesterday.

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