Visa (V), MasterCard (MA) PTs Raised at Nomura Securities

Nomura Securities analyst Bill Carcache reiterated Buy ratings and boosted his price targets on Visa (NYSE: V) to $299.00 (from $251.00) and MasterCard (NYSE: MA) to $106.00 (from $93.00).

Carcache commented, "We show that the probability of an earnings surprise (either a beat or a miss) is normally distributed across all of the companies in the S&P 500. In contrast to the S&P 500, MA’s returns are not normally distributed; rather they are positively skewed, meaning that the distribution is distorted to the right owing to the number of positive surprises significantly outnumbering negative ones. V’s returns are also not normally distributed; instead, the distribution of V’s surprise history is more tightly clustered and peaked around the mean. Distributions that are more peaked than normal reflect a lower likelihood of extreme outcomes relative to a normal distribution. We have revisited our outlook in the light of recent developments and are raising our target prices to reflect enhanced confidence in the repeatability and sustainability of mid-to-high teens EPS growth for both payment networks. We continue to like the risk vs reward trade-off inherent in owning V and MA shares at current levels."

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 $263.35 yesterday.

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