5. Visa Inc. (NYSE:V)
Number of Hedge Fund Shareholders In Q1 2024: 156
Visa Inc. (NYSE:V) is another household name, best known for its debit and credit cards. The average of 34 one year share price targets for the firm is $310.37 and the shares are rated Strong Buy on average. Visa Inc. (NYSE:V) has also beaten adjusted analyst EPS estimates in all four of its latest quarters, and it pays 52 cent quarterly dividend for a 0.76% yield. The historic Mastercard analyst note from Piper Sandler that we covered above also mentioned its larger rival Visa Inc. (NYSE:V). In the note, the firm shared that Visa Inc. (NYSE:V) can also grow its revenue by 10.7%, and along with Mastercard, target a $255 trillion market. Like Mastercard, Ramnani set an Overweight rating on Visa Inc. (NYSE:V)’s shares and ascribed then a $322 share price target.
For their March quarter of 2024 shareholdings, 156 hedge funds part of Insider Monkey’s database had bought a stake in Visa Inc. (NYSE:V). Chris Hohn’s TCI Fund Management held the most valuable stake which was worth $4.6 billion.
Visa Inc. (NYSE:V)’s price to forward earnings ratio is 27.55, making it overvalued over the market’s ratio of 21. However, its shares have appreciated by 43% over the past four years, which roughly matches the four year revenue growth of roughly 49%. This could mean that the shares hold their gains even if the economy slows down and Visa Inc. (NYSE:V)’s revenue slows. Like Piper Sandler, Wedgewood Partners also shared optimism for Visa Inc. (NYSE:V)’s future trajector in its Q1 2024 investor letter where it highlighted:
Visa stock posted a small negative drop during the quarter. In the 2irst quarter, the Company grew earnings per share +11% as payment volume growth was up +8% and cross-border payment grew a solid +16%, adjusted for currency. Beyond their consistent growth and execution, recent regulatory trends have caught considerable investor attention. The Company’s networks and value-added services drive enough economic value to bank customers and retailers that the addressable market for payments should continue growing at a healthy rate for many more years, regardless of recent regulatory changes. Visa’s value- added services can be extended to less-sophisticated, emerging non-Visa networks to help grow the overall payment ecosystem that make up the vast global payment addressable market. For example, not long after debit interchange rates were regulated last decade, Visa began an aggressive push to allow non-bank 2inancial institutions access to Visa’s networks, which helped drive more interchange volume to banks and offset lower interchange rates. This was a key element that spawned the massive “Fintech” industry that exists today. We continue to expect Visa’s scale and breadth of service offerings will help them drive attractive growth at stellar margins along with the overall payments’ ecosystem.
