Morgan Stanley says solid earnings growth will continue to drive share gains. The firm's new price target of $107 on Visa reps 18% upside from today's all-high.
Keefe, Brutette & Woods (Outperform, $104 PT): "Operating trends across the business look strong, with volume growth modestly better than our expectations."
Bernstein thinks Visa shot low with its 2017 guidance, setting it up for earnings beats this year. Analyst Lisa Ellis points to a lower tax rate from Visa Europe as a bottom line benefit.
SunTrust increases its price target to $110, noting that even with the $5B buyback program there is plenty of balance sheet flexibility left for management.
Loop Capital: "The upside was broad based, driven by solid volumes, strong revenue performance, solid cross-border volumes and somewhat lower than expected client incentives...While there may be less EPS upside if incentives do indeed ramp, some of this may be offset by further share buybacks."
Sandler O'Neill plays party pooper, calling valuation full and backing a Hold rating.
During the Visa earnings conference call, an interesting question was asked to CEO Al Kelly on what he learned on his trip to China about setting up licensing in China. "One of the things that I found out is that hopefully the Chinese government by the end of the second quarter is going to publish a set of more clarifying rules about international entities and what would be required to submit for a license," responded Kelly.
Now read: Visa: Think Of The Power »