
Analyst Jeff Cantwell from Seaport upgraded Visa Inc. to a Buy rating from Neutral, setting a price target of $359. Cantwell's revised forecasts for Visa exceed consensus estimates for both 2025 and 2026. One of the reasons for the preference for Visa over Mastercard in the current year is Visa's significant U.S. exposure, which the analyst believes will be advantageous in the market.
Cantwell anticipates robust service and data processing revenue for Visa in 2025 and 2026, driven by a strengthening U.S. economy in the latter part of the year. Additionally, the analyst has increased the estimates for Other Revenue, expecting heightened demand for value-added services from Visa's clients. The outlook includes a projected double-digit revenue growth for Visa in 2025 and 2026, with a corresponding 13% growth in earnings per share during both years. Cantwell also considers the upcoming Investor Day in February as a positive potential catalyst for investors interested in Visa.
In the midst of a potentially turbulent macro environment in 2025, Cantwell views Visa as a reliable earnings compounder with potential upside compared to consensus estimates. For investors interested in gaining exposure to Visa, Cantwell suggests considering investment options such as the iShares U.S. Financial Services ETF IYG and SPDR Select Sector Fund – Financial XLF. As of the last check on Tuesday, Visa's shares were up 0.87% at $309.58, indicating positive market movement following the analyst's upgrade.