Deutsche Bank Starts Visa (V) at Buy; $75 PT

Deutsche Bank initiates coverage on Visa (NYSE: V) with a Buy rating and $75 price target.

The firm said it is surprised that Visa is performing so well (up 50% from its IPO price of $44) given the difficult overall market conditions. Deutsche believes investors are starting to become more and more convinced that both Visa and MasterCard (NYSE: MA) should be long-term holdings based on:

• the compelling global secular growth dynamics of noncash forms of payment
  
• the pricing power uniquely inherent based on where Visa/MasterCard sit within the payments ecosystem
  
• the ability for Visa/MasterCard to drive operating leverage through realizing further scale benefits and cost-cutting now that they have been freed from legacy bank ownership.

As the market has determined that Visa should trade at a slight premium to MasterCard, Deutsche feels this premium is warranted given Visa's numerous tangible advantages over MasterCard.

Deutsche's $75 price target on Visa represents a potential gain of 13% from its Friday closing price of $66.11.

Visa, Inc., through its subsidiaries, operates retail electronic payments network worldwide. [BCS]
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