Opinions Gordon Reid
Visa Inc.VCOMMENTSep 20, 2012
Gordon ReidStock price when the opinion was issued
As of Nov 05, 2026. Market Open.
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Premium contentSince July 1, Visa has rallied from $351 to $414. Mastercard also caught a bid. Why? Well, money flowed out of volatile AI and semis into safer havens like credit cards. It's like the market remembered that credit card companies make money. After all, Visa is everywhere and enjoys a duopoly with Mastercard. Both act as a toll both, taking a small cut every time a consumer taps their card or a merchant accepts a payment. On Oct. 27, Visa reported strong Q4 numbers: payments volume rose 9% year over year, processed transactions climbed 10%, cross-border transactions jumped 14%, and e-commerce grew 17%. Earnings beat the street (narrowly) the past four quarters and continue to trend higher. The report inspired two upgrades, hiking the price target to from $426 to $464 (when averaged out). The only knock against Visa was that shares ran up heading into the print, and lost ground immediately after reporting until rallying again on Oct. 29 on strong volumes. Definitely one to buy and hold for a long time.
He reviews over 1k stock charts a day. Financials are one of 3 groups that are looking very favourable. Lots of opportunities, including in China (a tricky market). Just made new 5-year high after consolidating since June 2024.
A definite hold. Right in the centre of his farm team should the macro get a little better.
David BurrowsPremium content
You'd have to go back a very long time to find his firm holding MA. Owned V for a long time, mainly on the valuation differential. MA has always been 4-6 multiple points higher. Visa is better value. Likes the space.
V might be stronger on the debit card side, which is growing at a faster rate than the credit side. Likes management. PE in the 20s, a discount to normalized multiples. Consistent, predictable. Earnings continue to do well. Nice hedge to a lot of companies that are in the news.
Gordon ReidPremium contentWith quarterly transactions setting a record $4 trillion, we reiterate V as a TOP PICK. Revenues in advisory and security services grew 34% -- showing more runway for growth. It trades at 32x earnings and supports a robust 60% ROE. We recommend trailing up the stop (from $335) to $350, looking to achieve $440 -- 18% potential upside. Yield 0.7%
(Analysts’ price target is $423.40)Owned for about a decade. Trimmed for the first time ever last year, as it got above risk thresholds. Low double-digit growth metrics. When it's on sale, you should buy it.
Darren SissonsPremium contentPremium contentWe reiterate V as a TOP PICK. The company is seeking a stablecoin partner to expand its reach globally furthering its market depth. Recently reported earnings showed growing cash reserves as shares are aggressively bought back and debt retired. We continue to recommend a stop at $325, looking to achieve $432 - upside potential of 18%. Yield 0.7%
(Analysts’ price target is $420.14)
Premium contentFollowing recently reported earnings, we reiterate V as a TOP PICK. Consumers are spending and at higher rates than analysts expect -- including growth in travel spending despite geopolitical uncertainty. Cash reserves are growing as shares are aggressively bought back albeit with a slight increase in debt (not an issue as free cash flow is at five year highs). It trades at 29x earnings and supports an amazing 66% ROE and annual dividend growth has exceeded 15% over the past five years. We continue to recommend a stop at $325, looking to achieve $430 -- upside potential of 18%. Yield 0.7%
(Analysts’ price target is $404.18)Visa and Mastercard have been treading water the past year because the market has been fixated on AI, but that money has been rotating out of AI into places like credit cards. The two companies have some of the best business models, big moats and trading at attractive PEs, though neither are at decades-long low PEs. Visa's layoff of 7% of workforce is good for the stock. Probably AI is making Visa more productive.
One of the highest-quality names he owns. Share price has done nothing over 12 months, but business continues to enjoy 10% growth. Its network isn't going away anytime soon.
Martin Cobb, ASIP
Was down and trading in the low teens multiple because of the Durban proposal that would inhibit their debit card business. It is now back to the multiple it deserves given their growth rate. Fairly valued at this price. You are going to rely on organic growth of around 20% a year for your stock appreciation but you shouldn’t expect any upward revision of the multiple that there has been in the past.