Visa (V) Says Affluent Leading U.S. Recovery
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Price: $272.40 +0.39%
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Today's Overall Ratings:
Up: 11 | Down: 13 | New: 17
Rating Summary:
35 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 17
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Visa (NYSE: V) believes the current US recovery, while slow, has largely been driven by affluent spenders, noted a report today by analysts at Oppenheimer. In recent conversations, Visa management said 90 percent of credit volume growth has been driven by the affluent. The thesis is tied to Visa's strong credit volume growth rate, which has outperformed MasterCard's (NYSE: MA).
"Management provided a few potential explanations for its relatively healthy and outsized growth. For one, banks have significantly curtailed debit promotions given less favorable economics post Durbin," said analyst Glenn Green. "The affluent tend to use credit more than debit, and V feels it has a significant share of the affluent portion of key issuer portfolios."
Overall, Green thinks Visa is well positioned to benefit from the long-term secular shift from paper to plastic, consumer spending growth and increased globalization. The company is also making inroads with its e-wallet strategy.
Oppenheimer reiterated an Outperform rating on Visa (NYSE: V) and raised its price target to $170.00 (from $150.00).
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 $147.88 yesterday.
"Management provided a few potential explanations for its relatively healthy and outsized growth. For one, banks have significantly curtailed debit promotions given less favorable economics post Durbin," said analyst Glenn Green. "The affluent tend to use credit more than debit, and V feels it has a significant share of the affluent portion of key issuer portfolios."
Overall, Green thinks Visa is well positioned to benefit from the long-term secular shift from paper to plastic, consumer spending growth and increased globalization. The company is also making inroads with its e-wallet strategy.
Oppenheimer reiterated an Outperform rating on Visa (NYSE: V) and raised its price target to $170.00 (from $150.00).
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 $147.88 yesterday.
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