Visa: The 2025 Investment Thesis And Key Debates Entering The New Year
Summary
- Visa is underperforming the market due to regulatory concerns and growth runway doubts, but these issues are expected to ease in 2025.
- Visa's FY24 results were strong, with 11.7% revenue growth and 16% EPS growth, driven by robust payment volumes and cross-border transactions.
- Value-Added Services and New Flows are underappreciated drivers, with significant potential to boost Visa's performance and market valuation.
- Visa's current valuation is attractive, trading below Mastercard and historical averages, with a price target of $360 per share based on CY26 earnings.
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