Stifel Nicolaus Raises Price Target on Visa (V)
Stifel Nicolaus reported on Friday that they increased their price target for payment services company, Visa Inc(V).
The firm has reaffirmed its “Buy” rating on Visa, and has raised its price target from $185 to $187. This price target suggests a 16% increase to the stock’s current price of $157.06.
An analyst from the firm commented, “in our view, Visa delivered slightly better-than-expected 1Q results once again thanks to lower rebates and expenses. Although these contra-revenues can typically be lumpy, top line trends proved resilient and we see potential upside in volume/revenues as the global economy stabilizes. As such, we are raising our estimates slightly and our target price increases to $187 and remains based on 20x calendar 2014E EPS. We reiterate our Buy rating based on our view that multiple expansion is still likely given falling litigation/regulation risks and powerful secular growth.”
Visa shares were mostly flat during premarket trading Friday. The stock has increased 46% in the past year.
The Bottom Line
Shares of Visa Inc(V) have a 0.84% yield, based on Thursday’s closing price of $157.06
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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