Goldman Sachs and RBC Analysts Bullish on Visa Forecasts

After helping underwrite Visa Inc.’s (V) record-setting $18-billion IPO, Goldman Sachs and RBC Capital Markets are initiating coverage of the credit card company with bullish forecasts. Goldman rates the shares a “buy” with a $90 price target, while RBC is at “outperform” and $80. Visa shares are up more than 30% since it began trading at $44 on March 19, 2008.

RBC analyst Cynthia Houlton still sees more upside for the following reasons:

The company’s margin expansion opportunities during the next 18 months.

Its market-leading position that is expected to allow Visa to benefit from the shift toward electronic payments.

The limited credit risk it faces as a “toll taker.”

The maturing of global financial markets that should drive international opportunities.

Visa operates the world’s largest retail payments network, which includes more than 16,600 financial institutions, 29 million global merchant outlets, and 1.5 billion cards that drive 48 billion transactions, Ms. Houlton told clients.

It will report its first quarterly earnings since the IPO after market close on April 28.

Goldman analyst Elizabeth Grausam said her rating is not contingent on these results as the stock’s momentum could drive shares either way, “given high, but still opaque, expectations.”

She believes the premium Visa trades at is warranted due to potential earnings upside as it reorganizes its recently consolidated global entities.

Comments

[wallawallabingbang]

Get this right: There is no global play here.

I've got some optimistic calls on the stock, but realize, this IPO was designed, at least in part, to ameliorate legal charges, for which they've allocated 3 billion dollars.

The charges pertain to the EU, and alleged anti-competitive practices here and abroad. That's why those operations are separate, until some later consolidation, waaaay down the road.

I wish people would take pains to explain that very, very clearly and often...

[investorslive]

Wrote and linked about your article here looks interesting

[investorslive]

To view it - you can visit

www.investorslive.com/... or www.investorslive.com/.../

[VWinner]

Get this RIGHT- this is a HUGE global play-

To the retard that posted that-

have you even looked at the year-over-year growth.

I am so sick of hearing mentally challenged people pick this stock apart.

Go to Visa's website and take a look at the slideshow and listen to the earnings report conference call from yesterday-

ALL GLOBAL MARKETS GREW AT BETWEEN 25%- TO 45% LAST YEAR ALONE!

Furthermore, V is going to take market share AWAY from Mastercard.

Mastercard booked profits largly due to selling its card operation in Brazil (redecard)- leaving the market wide open for V. V's Latin American shareholders are the largest banks. I was in Brazil last year and V is already all over the place. Brazil is the world's 5th largest company.

V's not only has the biggest Chinese banks in its pockets but China Life (China's biggest life insurance company), and the Chinese wealth fund invested a combined 4 hundred million IN THE IPO!

Kuwait's wealth fund invested 8 hundred milliion IN THE IPO.

V has secured the biggest relationships in the Middle East, in China, in Brazil, and in India. It will overtake Mastercard within 2 years.

Also - my fact-challenged friend. Visa did not go public to pay off lawsuits it could have secured credit for that easily. It went public to GO PUBLIC- and in doing so used 10billion to buy out bank ownership. As much money as is secured to pay down future lawsuits is going in to obliterate mastercard.

Mastercard is a great company- but it is #2- and now that V is public and has the leverage of shares and marketcap look for this to be a repeat of the Miller and Bud wars of the 90s. V is the Bud.

I own several thousand shares of V and trade the stock as well- and this will be a 100$ stock by the end of the year. Post-Ipo ownership is LESS THAN 5%. Now that V is being covered by analysts, and is reporting- look to the institutional investors to scoop up the float.

If you have half a brain (twice as much as the seeking alpha 'writers' and most posters) you will buy on ever dip you can.

[VWinner]

correct- Brazil is the world's 5th largest Country :)

[gebby]

buying v makes sense

[VWinner]

Need I say more: Visa closed today at 80.88

On 49,092,746 shares traded.

The three biggest days since V startred trading were all about 25mm shares traded.

Who do you think is buying those shares today? Smart money.

Small money will be out of this stock in the next couple of days- happy to run with a few dollars of profit- it could be Wed or Thur- and expect to see a pullback of maybe 3$ - that will be the last time you will be able to buy the stock in the 75 range- after that we will see a steady push to 100 a share-

Get on the V train while you still have time- the train is about to leave the station..........

[wallawallabingbang]

V Weiner, I do not believe that this IPO and investing in Visa now gives you a piece of visa's global transactions.

Refute that if you like.

I don't care what countries have INVESTED in the IPO. That's not the same as saying that they stock participates in global transactions, because it does not.

You may be a bit challenged yourself. I've done the diligence. Can't speak for you in that regard....

[wallawallabingbang]

Here's another view that I feel is quite realistic and well-reasoned. For the benefit of headmaster V Weiner:

seekingalpha.com/artic...

I'm long the stock so I'm not offended by the truth, those who know, or those who communicate it...

[VWinner]

Walla - walla- You are SSOOOOOOOOOOO wrong-

You need to read the Visa prospectus - the V offering covers ALL countries OTHER than EUROPE.

You should be ashamed of yourself posting on this board without having one of the biggest facts.

Go to Visas corporate site-

You (like other misinformed people) - don't even understand a company that you are invested in. Listen- Visa Europe is the ONLY entity not included (for now). Visa made the strategic decision to keep V off to the side (which V actually controls) until after V Europe settles its regulatory issues with the EU. Once that is done V euro will be folded back into V and it will be yet another reason to be long in the stock.

Most of V's numbers came from the global market- this is where V is drawing its growth from.

Go to the Visa corporate site and there is a breakdown, by global region, of where their revenue and transaction volume is derived from.

[wallawallabingbang]

So, you admit it, you won't profit from European transactions, until...

Sorry, but I don't quite understand your taking umbrage to this issue and my supposed need for shame.

Meantime, I guess I'm impressed the Chinese have invested.

However, I wouldn't get ahead of myself and call it a 'global play' yet just because foreign investors are putting some skin in the game...

Glad the stock is doing well and I assume it will continue.

And I futher hope the EU enables reconsolidation, although there's never a guarantee...

[VWinner]

Are you not getting this? Europe would represent maybe 15% of their business. You didn't realize that V is the entire world (minus europe)

Bottom Line- stock will be 100 within 3 months.......

Take a look at my posts since day one on all the V articles

[VWinner]

This is a global game- and I can't understand why you don't understand this- Are you not getting that V includes ALL MARKETS EXCEPT FOR EUROPE?? Did you not get that the majority of V's growth CAME FROM NON-US MARKETS???

Do yourself a favor - and learn about V before posting

[VWinner]

The GLOBAL V- is 84. at 11:25- CAN YOU SAY ANOTHER ALL-TIME HIGH.

I see a few speedbumps ahead of me as I am entering the tunnel- but I can see 100$ on the other side..................

God created credit cards on the 8th day :-)

[VWinner]

Options market goes INSANE--------

Visa (V) – A 2.4% gain for its shares to $82.79 appears to have jump-started the speculative appetites of call traders in Visa. With nearly 130,000 options trading by noon, more than 4 times as many calls are trading as puts, and these at the out-of-the-money strikes we observed prior to its earnings announcement earlier this week. Two-way traffic is occurring at strikes of 85 and 90, while the 95 call strike attracted plenty of buyers at $1.05. Can Visa hit $100 in May? Traders have bet on that possibility more than 3,700 times today even though the 20-cent price of that position reflects just a 6% probability of it actually coming true.

[VWinner]

V- Last chance to buy to to buy under 83$................

[CanadianClub]

Hi V Winner...great commentary! I go in at 59 and 77 despite all the bad talk.
Anyway, I'm in Toronto trying to find Options quotes in CAD instead of USD. Do you know wheere I might find these chains?

Thanks,
EJ

[VWinner]

Canadian Club- I don't know how to find CAD options chains- but you might take a look at the TSX site - I know they have a Q&A section- so they might be able to help you if you post a question. Also I know that TD/Ameritrade is now Canadian owned so you might check out the TD Waterhouse website. As far as buying in to V @ 77- you still have a lllllllloooooooonnnnnn... ride ahead - enjoy it.

Last I live in NYC- and loved hitting Toronto last summer- you have a GREAT city........ My ONLY complaint is that its too much like America- but the city was great and the people were great and that is a city I could spend more time in........

Good luck with V