Visa (V) Gains as Analyst Recommends Buying Ahead of Visa Europe Deal Close

April 1, 2016 10:42 AM

(Updated - April 1, 2016 1:01 PM EDT)

Visa (NYSE: V) is gaining 1.2% Friday after Bernstein analyst Lisa Ellis said the closing of the Visa Europe deal is imminent and is recommending buying the stock at current levels.

Ellis expects Visa to announce the closure of the $23 billion Visa Europe deal as early as today, but very likely by the company's second quarter earnings report in late-April.

Despite the recent move higher, Visa shares remained down 1% YTD (before today) and they "strongly recommend investors buy Visa at these levels."

The analyst notes Visa has outperformed the S&P by an average of ~15% over the past three years, and the company's performance outlook is strengthening going forward, due to the deal.

The firm's $90 price target provides 18% upside from current levels and can be achieved through earnings performance and the successful close of the Visa Europe deal, with neither multiple expansion nor contraction.

Visa is the firm's Top Pick Pick across their coverage. They believe the stock will double in four years, as Visa Europe synergies accelerate Visa's EPS CAGR to at least 19% through 2020.

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 $76.48 yesterday.


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