Evercore Raises Price Target On Visa, Mastercard

Evercore raised its price targets Monday on Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA).

Analyst Dave Togut forecasted that the eventual sale of Visa Europe to Visa Inc will be accretive to Visa Inc by impacting EPS +3 percent within one year of a sale and +5 percent accretive in year two.

Visa Europe holds a put option which, if exercised, will require Visa Inc to buyout Visa Europe. Togut valued the Put option at $13 billion and felt that significant cost savings would result from the combined companies.

The price target for Visa was raised from $261 to $304 based on 25x 2016 estimated EPS of $12.15. Mastercard's price target was raised to $110.

Visa recently traded at $257.00, down 0.46 percent.

Mastercard recently traded at $86.92, down 0.45 percent.