Visa (V): Review of the Strategic Decisions Conference CFO Conversations - Bernstein

Bernstein analyst, Lisa Ellis, hosted Visa's (NYSE: V) CEO, Charlie Scharf, at the Strategic Decisions Conference on June 1st. Visa remains the analyst's Top Pick and believes the stock will double in four years with the following key points:

a) Visa is unlikely to lose any material share to MasterCard in Europe in the wake of the Visa Europe acquisition

b) the regulatory changes in Europe offer potential upside to our forecasts (currently 19% EPS CAGR through 2020)

c) Visa is likely to resolve its dispute with PayPal amicably, although hostile language is likely communication of the 'party line' until the negotiations are complete

d) it's hard for cybersecurity to not be the most significant risk to Visa, but we also believe CUP and private-label in large marketplaces (e.g., Amazon) pose medium-term risks

e) China entry is a must-do, but will not show an ROI for a long time.

The firm reiterated an Outperform rating and $97 price target.

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 $81.65 yesterday.

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