Following the ten-year contract renewal between Visa Inc (V) and its largest issuer JP Morgan Chase (JPM), analysts at Oppenheimer reiterated their bullish rating on the credit card company on Wednesday.
The analysts maintain an “Outperform” rating on Visa and see shares reaching $177. This valuation suggests a 12% upside to Tuesday’s closing price of $157.83.
An Oppenheimer analyst commented, “While we suspect V will provide JPM a certain level of discounting upon the renewal, V anticipates incremental volume gains from JPM over time. We understand that this is the first deal of its kind, and perhaps highlights increased flexibility by Visa to work with its largest issuer and acquirer partners.”
Visa shares were down a fraction during Wednesday morning trading. The stock is up +34.76% over the past twelve months.
The Bottom Line
Shares of Visa (V) have a dividend yield of 0.84% based on last night’s closing price of $157.83 and the company’s annualized dividend payout of $1.32 per share.
Visa Inc (V) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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