Visa: Double-Digit Capital Appreciation And Dividend Growth Prospects – Reiterate Buy

Summary:

  • Visa is expected to remain the market leader in the global payment processor market in 2024, with growing market share on a YoY basis.
  • With robust YTD results, we believe that the fintech is well positioned to deliver on the FY2024 net revenue guidance with richer bottom-lines.
  • As the market prices in a pivot in the upcoming FOMC meeting in September 2024, we may see the Consumer Confidence Index improve nearer to 2019 levels.
  • Assuming a consistent intermediate term execution, V is likely to offer double-digit capital appreciation prospects, despite the expensive PEG non-GAAP valuation.
  • Investors may also look forward to a rich dividend hike in the upcoming earnings call, building upon the 5Y Dividend Growth Rate at +15.77%.
Businessman Stands With Flag On Top Of Tall Stack Of Coins

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V’s Investment Thesis Remains Promising As The Payment Processor Market Leader

We previously covered Visa (NYSE:V) (NEOE:VISA:CA) in April 2024, discussing why we had reiterated our Buy rating, thanks to its robust performance metrics and expanding profit margins, with it


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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