Visa Reports Strong Q2 Growth, Mizuho Adjusts Price Target

Mizuho's Dan Dolev raised their price target on Visa (NYSE: V) by 3.8% from $265 to $275 on 2024/05/02. The analyst maintained their Hold rating on the stock.

Visa, the global payment technology company, recently reported its first-quarter earnings for 2024. Following the release of the earnings report, Dan Dolev of Mizuho updated their price target on Visa and shared their analysis of the company's performance.

In the first quarter of 2024, Visa exceeded expectations with an earnings per share (EPS) of $2.51. This figure surpassed the Zacks Consensus Estimate of $2.43 and represented a remarkable 20.1% increase compared to the same quarter in the previous year. Additionally, Visa reported revenue of $8.78 billion, surpassing the Zacks Consensus Estimate by 2.1% and demonstrating a robust 9.9% growth compared to the same quarter in 2023.

Furthermore, Visa showcased strong financials in terms of free cash flows, which amounted to $4.3 billion, marking a significant 16.6% year-over-year increase.

CEO Ryan McInerney expressed satisfaction with the company's performance, stating, "Visa delivered strong results in Q2, with net revenue up 10%, GAAP EPS up 12%, and non-GAAP EPS up 20%." McInerney also highlighted the growth in overall payments volume and cross-border volume, driven by stable consumer spending.

Looking ahead, Visa's management provided guidance for the third quarter of 2024, anticipating double-digit EPS growth and low double-digit revenue growth. For the full fiscal year 2024, they expect low teens EPS growth, low double-digit revenue growth, and low double-digit expenses growth.

Amidst these positive developments, Mizuho analyst Dan Dolev adjusted their price target on Visa's competitor, Mastercard Inc. On May 2, 2024, Dolev lowered the price target by -0.4%, from $480 to $478, while maintaining their Strong Buy rating on the stock.

It is worth noting that 100% of top-rated analysts currently rate Visa as a Strong Buy or Buy, with no analysts suggesting a Hold rating or recommending to sell the stock.

The consensus forecast among analysts is that Visa's upcoming year will deliver an earnings per share (EPS) of $10. If these predictions hold true, Visa's next yearly EPS will experience an 11.9% increase on a year-over-year basis.

Since Visa's latest quarterly report on April 23, 2024, the stock price has experienced a decline of 2.4%. However, on a year-over-year basis, the stock has shown significant growth, with an increase of 17.9%. It is important to note that during this period, Visa's performance has trailed behind the broader market, as the S&P 500 index has risen by 22.9%.

Dan Dolev, the Mizuho analyst, is ranked in the bottom 1% out of 4,572 Wall Street analysts, according to WallStreetZen. Dolev specializes in the Financial Services and Technology sectors, among others. Despite the Hold rating on Visa, it is crucial to consider multiple perspectives and analyze various factors when making investment decisions.

Visa Incorporated operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. In addition to its network services, Visa also offers credit cards under brands such as Visa, Visa Electron, Interlink, VPAY, and PLUS. The company, founded in 1958, is headquartered in San Francisco, California.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.