Piper Jaffray analyst, Jason S. Deleeuw, cut estimates but raised the PT as Visa (NYSE: V) slightly beat FY 2Q consensus revenue and EPS, but lowered its FY ’16 guidance largely due to a lack of material improvement in global economic trends. The lowered growth outlook takes some of the shine off Visa’s shares, but the analyst believes the long-term secular growth outlook remains strong. Despite estimates moving lower, the price target increases from $87 to $92 based on an increased multiple (27x up from 25x). The firm maintained an Overweight rating.

Results looked good. Constant dollar net revenue growth totaled 9% (6% reported) driven by constant dollar volume growth of 12% (7% reported), both of which were inline with the prior quarter after adjusting for a ~1% point leap year benefit. Cross-border volume growth totaled 5% on a constant dollar basis vs. 4% the prior quarter. Through April 14th, total volume and cross-border volume growth trends remained consistent with FY 2Q after normalizing for leap year. OPEX grew 6% on a reported basis driving essentially flat y/y margins. Adjusted EPS totaled $0.68, growing 12% on a constant dollar basis (7% reported).

Visa lowered its net revenue growth outlook from HSD-LDD to 7-8% on a constant dollar basis. The revenue growth guidance still assumes a 3% point FX headwind. The slower revenue growth outlook was driven by 4 issues:

1) no improvement in cross-border volume growth

2) continued weak trends in commoditiesheavy economies

3) continued low U.S. gas prices

4) delays in the Costco/ USAA portfolios, which will likely result in expensed incentives greater than revenue recognition in the 2H of FY ’16

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 $80.79 yesterday.