Visa's Q1 Is A Positive Teaser Ahead Of Investor Day: Analyst

Core Insights - Visa Inc. reported quarterly earnings of $2.75 per share, exceeding the analyst consensus estimate of$2.66, with quarterly revenue of $9.51 billion, surpassing the estimate of$9.34 billion [1] - Total cross-border volume on a constant dollar basis increased by 16% in the quarter [1] - Analysts have mixed ratings on Visa, with some maintaining a Neutral rating due to concerns over top-line growth and potential litigation/regulatory risks, while others are optimistic about the company's future performance [1][2][3] Analyst Perspectives - BofA Securities noted that Visa's EPS growth guidance is influenced by first-quarter performance and an updated tax rate assumption, maintaining a Neutral rating [1] - RBC Capital Markets attributed the strong quarter to solid holiday spending, elevated FX volatility, and strong cross-border travel, setting a positive backdrop for Visa [2] - Goldman Sachs projected that Visa's strong first-quarter results would support the stock, citing accelerated volumes and raised guidance [2] - Oppenheimer expressed optimism about Visa's position in the payments sector, highlighting the shift from paper-based payments to cards [3] - Keefe, Bruyette & Woods noted ongoing volume acceleration in discretionary spending categories and potential upside as the year progresses [4] Price Forecasts - BofA Securities raised its price forecast for Visa to $363 from$331 while maintaining a Neutral rating [6] - RBC Capital Markets increased its price forecast to $395 from$322, reiterating an Outperform rating [6] - Goldman Sachs raised its price forecast to $384 from$346 while maintaining a Buy rating [6] - Oppenheimer increased its price forecast to $390 from$375, reiterating an Outperform rating [6] - Keefe, Bruyette & Woods raised its price forecast to $400 from$360, maintaining an Outperform rating [6]