UBS initiates coverage on Visa (V) with a Neutral; Secular Story Still Intact, But Durbin Impacts Hit Growth

UBS initiates coverage on Visa (NYSE: V) with a Neutral rating. PT $124.

UBS analyst says, "With shares sitting at all-time highs (dollar value—not forward P/E), we think short-term outsize gains are far less likely now than 6-9 months ago. The multiple has recovered to near pre-Durbin Amendment levels, and V is again a “consensus long” Financial Tech name despite more difficult FY12 comps and Durbin-related strategic uncertainty. As such, we would not be buyers at this point in the cycle."

"Near-term�worries aside, we believe V remains an excellent company, and we view the model as strong and intact. Ownership data show the stock’s appeal has broadened considerably over time, as value and income-oriented investors have joined V’s traditional growth investor base—creating a more stable, long-term focused ownership base and a strong backstop for the shares."

To See Ratings Summary & History on V, Click Here

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