Citi Reiterates Buy Rating on Visa (V)

Citi analyst Ashwin Shirvaikar reiterated a Buy rating and $319.00 price target on Visa (NYSE: V).

The analyst comments "Visa is reportedly working with U.K. banks to improve account-to-account payments functionality, according to Bloomberg (Sep 5). The initiative appears focused on instituting a consumer dispute resolution process for payments made via bank transfer. This seems conceptually similar to the fraud-related dispute mechanism that Visa applies well at scale in the core network business. Visa’s ecosystem role and relationships with banks set it up well to optimize parts of the account-to-account payments process. Beyond monetization, we note two reasons why this development is incremental to the growth narrative: (1) Illustrates additional value-add service growth opportunity; (2) Shows increasing ability to generate revenue from account-to-account transactions. While more details may be forthcoming, there are other potential value-add service prospects (e.g., fraud identification and reduction). In addition, there is opportunity for extensibility beyond the U.K. V remains Buy-rated."

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 $280.49 yesterday.

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