Visa Inc (V): Analysts Sanguine Ahead Of Q1 Earnings

Visa Inc (V): Analysts Sanguine Ahead Of Q1 Earnings

On Wednesday, Visa Inc (NYSE:V) will be reporting their Q1 results and analysts are already recommending BUY V. Robert W. Baird analyst, David Koning, recently recommended BUY Visa and has already seen a positive return. David thinks that now is an attractive entry point based on the stock’s “compelling valuation”. David believes that the company has a strong business model and solid balance sheet, pointing out, “We think EPS growth in the mid-teens is sustainable over time behind roughly 10%+ revenue growth (the international segment is now about 50% of revenue and can grow rapidly)”. Even though investors have acknowledged a few fears about the company, David notes that “risk of potential share loss due to changes in the exclusivity rules did not materialize,” and, “full displacement [in Russia] is unlikely so long as consumers continue to use Visa / Mastercard (acceptance largely consumer driven). Russia is likely <1% of revenue, not very impactful regardless of displacement.”

David’s latest Visa Inc (NYSE:V) recommendation has already earned him +1.6% over S&P-500, adding to his overall ranking as number 129 out of 3015 analysts, with an +11.4% average return over S&P-500 and a 70% success rate of recommendations. To review all of David’s recommendations, download TipRanks.

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David also recommended BUY Visa Inc (NYSE:V) in December 2009, which earned him positive return. At the time, David raised his price target from $88 to $100, arguing, “We expect reaccelerating growth over the next couple quarters, along with annual earnings-per-share growth of more than 20 percent over the next couple years, and expect both to drive strong stock performance over the next year.” David earned +6.4% over S&P-500.

While David has experienced a few losses, including his BUY Total System Services, Inc. (NYSE:TSS) in December 2013, David has also experienced returns measuring over +100% over S&P 500 (INDEXSP:.INX)!

In of May 2013, David recommended BUY Qiwi PLC (NASDAQ:QIWI), the largest operator of nonbank self-service payment kiosks in Russia. David was intrigued by the digital wallet aspect of the country, where “consumers can make payments to thousands of places using their cellphones without ever having to have a credit card.” David’s recommendation earned him +103.8% over S&P-500!

More recently, David has seen success recommending Mastercard Inc (NYSE:MA). On April 14 David advised BUY MA pointing out that “MA consistently generates strong FCF in excess of EPS (FCF conversion averaged 114% of EPS the last four years), no debt.” And he argues, “we view risk/reward as attractive at these levels given MA’s consistent execution, strong balance sheet, solid FCF generation, and ability to deliver double-digit revenue/EPS growth.” David has already earned +2.3% over S&P-500.

Money will always be a major topic of discussion, but will Visa Inc (NYSE:V) end up in your portfolio? To continue following David’s recommendations be sure to download TipRanks, and start making informed decisions with advice you can trust.

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