FBR Capital Raises Price Target to $80 on Visa (V) Following 3Q Results

FBR Capital maintained a Market Perform rating on Visa (NYSE: V), and raised the price target to $80.00 (from $70.00), following 3Q15 results. Operating EPS of $0.62 beat consensus estimate of $0.58.

Analyst Scott Valentin commented, "We reiterate our Market Perform rating and raise our price target to $80 on shares of Visa following 3Q(Jun)15 operating results that beat FBR and consensus estimates despite a stronger USD and lower gasoline prices that continue to negatively affect results. While management remains cautious on the current environment and expects 4Q(Sep)15 results to be negatively impacted by lower FX volatility and higher client incentives expense, it positively revised certain aspects of its FY15 guidance. We reduce our FY(Sep)15 core operating EPS estimate to $2.49 (from $2.61), reflecting higher rebates and incentives, and increase our FY(Sep)16 EPS estimate to $3.02 (from $2.99). With a dominant global payment position, attractive operating margins (mid 60s), and ability to return meaningful amounts of capital, we see Visa as a core holding facing primarily transitory macro-driven challenges. That said, we would wait for a more attractive valuation to purchase shares."

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 $71.75 yesterday.

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