Visa's Low Stock Valuation, Growth Prospects Draw BofA Upgrade — Market Talk
Visa shares are up 5% to $341.30, following an upgrade to buy from neutral at BofA Securities with comments that it's undervalued. Visa is one of two S&P 500 companies that has delivered 10%-plus revenue and EPS growth and 50%-plus operating margins since 2021, yet the stock has underperformed the S&P 500 by 25% or more since June, the analysts say. On top of that, stablecoins are a growth opportunity for Visa, as BofA thinks stablecoin will be used more for cross-border business-to-business payments, rather than causing consumers to shift away from card payments. ([email protected])