Visa Garners Analyst Praise, But Caution Lingers Over Outlook And Valuation

Visa Inc. (NYSE:V) shares are trading slightly higher on Wednesday after the company reported third-quarter net revenue of $10.17 billion, up 14% year-over-year.

The revenue total beat a Street consensus estimate of $9.82 billion.

• V is showing strength near its 52-week high. Track live prices here.

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• Bank of America analyst Mihir Bhatia reiterated the Neutral rating on the stock, with a price forecast of $385.
• Oppenheimer analyst Rayna Kumar reiterated the Outperform rating on the stock, with a price forecast of $391.
• Goldman Sachs analyst Will Nance reiterated the Buy rating on Visa, lowering the price forecast from $416 to $406.

Here are the analysts’ takes on the stock:

Bank of America: Fiscal Q3 results came in better than expected. Bhatia, however, points out that the Q4 outlook fell short of consensus estimates.

July trends seem to have held steady compared to the previous quarter, but Visa’s guidance for fourth-quarter EPS was softer than anticipated.

Bhatia also remains cautious about Visa’s revenue growth trajectory, as well as ongoing litigation and regulatory risks. He also made slight adjustments to his earnings projections. FY25 and FY26 EPS estimates rose to $11.43 and $12.86, respectively, up from $11.32 and $12.81.

Oppenheimer: Kumar views Visa’s guidance as cautious, noting that strong quarter-to-date trends may create room for potential upside.

He points out that management hasn’t observed any significant impact on cross-border growth tied to Trump tariffs. Instead, Visa is favorably positioned for long-term growth as global payment systems evolve, Kumar adds.

While Kumar acknowledges that the market appears to be pricing in a slower growth outlook based on macro factors and heightened regulatory risk, he maintains that Visa is structurally well-positioned to navigate and benefit from these shifts.

Goldman Sachs: Nance suggests that Visa’s tone on the outlook turned more constructive, with management indicating that the fourth quarter exit run-rate points to low double-digit growth once one-off impacts related to incentives are normalized.

While skeptics may focus on the sizable pricing benefits expected in the back half of the year, Nance believes the company is also signaling a cautious approach to incentives after outperforming expectations on that front through most of 2025.

He also highlights that value-added services (VAS) growth accelerated to 26%, which he considers a notably strong result that could further support the company’s forward outlook.

Taking these factors into account, Nance expects Visa to wrap up the year in a solid position heading into 2026 and sees continued healthy growth ahead.

Addressing concerns raised by some investors, Nance acknowledges that valuation remains a key point of debate.

Price Action: V shares are trading higher by 0.28% to $352.55 at last check Wednesday.

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