This Analyst Prefers Visa Over Mastercard In 2025 - Here's Why

Core Viewpoint - Seaport analyst Jeff Cantwell upgraded Visa Inc. to Buy from Neutral with a price target of $359, citing stronger forecasts for 2025 and 2026 that exceed consensus estimates [1] Group 1: Financial Performance - The analyst raised revenue forecasts for Visa, particularly in service/data processing, driven by a strengthening U.S. economy in the latter half of this year [1] - Visa is expected to experience double-digit revenue growth in 2025 and 2026, with projected EPS growth of 13% in both years [2] Group 2: Competitive Positioning - Cantwell prefers Visa over Mastercard due to Visa's greater exposure to the U.S. market [1] - The analyst also increased estimates for Other Revenue, anticipating higher demand for value-added services from Visa's clients [2] Group 3: Market Outlook - In a potentially turbulent macro environment in 2025, Visa is viewed as a steady earnings compounder with upside potential compared to consensus estimates [3] - The upcoming Investor Day in February is seen as a positive catalyst for investors [2] Group 4: Investment Options - Investors can gain exposure to Visa through iShares U.S. Financial Services ETF (IYG) and SPDR Select Sector Fund – Financial (XLF) [3]