Wells Fargo Comments on Visa's (V) Q2; Stock Likely Rangebound, Says Analyst

Wells Fargo maintained a Market Perform rating on Visa (NYSE: V) with a price target of $190-$210. Analyst Timothy Willi thinks the stock will trade rangebound.

"We maintain our Market Perform rating on V and believe shares will be rangebound near term as concerns, including lowered FY14 revenue guidance, slowing crossborder and Russia, weigh on investor sentiment," said Willi.

"Bullish Points: (1) U.S. credit PV was a bit stronger; (2) U.S. PV growth improved in the first 21 days of April to 12%; however, the pick-up was attributable to Easter so it is hard to say whether the level can be sustained for the entire June quarter; and (3) On a constant currency basis, we estimate ROW PV growth improved to about 16% from 15% in the previous quarter. Bearish Points: (1) U.S. debit PV, processed transactions and cross-border PV growth were all below our estimate for the March quarter though weather and Easter shift likely impacted; (2) Russia is a concern and is expected to reduce FY14 EPS by several pennies; and (3) even though our FY14 EPS estimate is higher our revenue assumption is lower and we lowered our FY15 EPS estimate by $0.08," he added.

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 $209.40 yesterday.

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