Mizuho Upgrades Visa (V) to Outperform

Mizuho analyst Dan Dolev upgraded Visa (NYSE: V) from Neutral to Outperform with a price target of $425.00 (from $359.00).

The analyst comments "Upgrading to Outperform. With cash-to-card historically driving two-thirds of V's volume growth, length of the US cash conversion runway is key debate. Our in-depth category analysis shows that V's subdued excess growth vs. US PCE post-COVID has largely been the result of vertical mix shift, as less-card-based categories have outgrown more-card-based categories post-pandemic. Although this adverse trend has started to unwind, we see more reason for optimism as the remaining cash-to-card runway in the US is longer than previously expected (we est. true US card penetration at ~75% vs. 80-90% consensus). This leaves room for another decade of solid top-line growth domestically. Plus, V's performance in Canada & Nordics offers evidence of above-PCE growth, even when card penetration is >90%. Raising FY26/27 estimates on better US volume growth expectations. Value V at 31x our FY26 estimate (vs. 28x previously). PT $425 (from $359)."

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 $368.00 yesterday.

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