Visa (V) Should Regain its Mojo with Cross Border Transactions - Mizuho Securities

Mizuho Securities analyst Dan Dolev reiterated a Buy rating and $255.00 price target on Visa (NYSE: V) on the belief that the company "regain its mojo" despite secular concerns for the following reasons:
1) Despite the COVID-induced step up in cash-to-card conversion, ~$8tn of US PCE is still not on the V/MA rails
2) E-comm still accounts for just 13% of US retail spend
3) Debit volumes in Australia - the cradle of BNPL - are more than offsetting declines in credit
4) AMZN dispute is likely to be resolved, management commentary and prior spats between Visa & retailers suggest.

The analyst stated "When will sentiment turn positive? Perhaps as soon as when faster than anticipated improvement in cross-border volumes drive positive earnings revisions." "Visa recently said that it expects cross-border to return to 2019 levels in the summer of 2023. Could this estimate prove conservative? Assessing search interest data on travel booking service Kayak shows that International searches are catching up to Domestic, with International just ~15% below 2019 levels as of mid-November 2021".

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 $200.86 yesterday.

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