Wall Street Analysts Just Trimmed Price Targets for These 5 Stocks

04. Visa Inc. (NYSE:V)

Price Reaction after the Price Target Cut: -0.60 (-0.26%)

On October 9, 2023, JPMorgan analyst Tien-tsin Huang adjusted the outlook for Visa Inc. (NYSE:V). The analyst lowered the price target from $296.00 to $293.00 while upholding an Overweight rating. As of the latest data, Visa Inc. (NYSE:V) current market price is $234.44, reflecting a marginal decrease of 0.3%. This revision by JPMorgan Chase & Co. signifies a reevaluation of Visa Inc. (NYSE:V) potential within the financial services and payment industry. Despite the reduced price target, the decision to maintain an Overweight rating suggests that JPMorgan sees Visa Inc. (NYSE:V) as poised for outperformance relative to the broader market.

Baron FinTech Fund made the following comment about Visa Inc. (NYSE:V) in its second quarter 2023 investor letter:

“We modestly trimmed Visa Inc. (NYSE:V), Mastercard Incorporated, and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.

Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo, Visa announced its intention to acquire the Brazilian company for $1 billion in late June.”