Nomura Securities Maintains a 'Buy' on Visa (V); Raising FY Outlook on Strong Q2

May 3, 2012 10:01 AM EDT Send to a Friend
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Price: $240.85 +1.77%

Rating Summary:
    17 Buy, 6 Hold, 1 Sell

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Nomura Securities maintains a 'Buy' on Visa (NYSE: V) price target of $140.00.

Analyst, Bill Carcache, said, "Ex one-time items, Visa reported 2Q12 EPS of $1.60 versus our / consensus estimate of $1.51. The $0.09 EPS beat relative to our estimate was driven by higher-than-expected operating revenues (across the board) and higher-than-expected operating margins (primarily due to lower-than-expected advertising expenses). Looking ahead, we believe 3Q will represent the trough for debit losses and will be key to assessing Visa’s market positioning in US debit in a post-Durbin environment. Management communicated a more positive outlook and raised 2012 EPS guidance to high teens/low 20% growth (from high teens growth previously). Our 2012E/2013E EPS are $6.00/$7.22 vs. Street at $6.00/$7.02, respectively."

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 $122.19 yesterday.


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