Visa Inc. (V)

An analyst downgraded it today, commenting on its future growth, but he feels it isn't talked about enough. It continues to be the asset-lite and risk-free fintech play. It's consistent.

Other payments stocks are sexier, but you don't know if they will work. You need to be in the payments sector as more payments go digital. Visa is the largest and most profitable in this space. Has little capex, they buy back shares and gushes cash. Recent negative headlines about anti-trust and fines pushed the valuation down to a reasonable below 25x instead of a normal 30x. 

For 2024, 2025 and 2026, 2027, 2028 EPS is expected at: $9.95, $11.17, $12.63, $14.34 and $16.64, for a five year growth rate of 67% (inclusive, not annualized). Sales for the same periods: $35.9B, $39.7B, $43.7B, $47.5B, $52.0B (growth 44%). Given its global market share position, blue-chip status and performance history, we would be comfortable buying today. A better price might be $235 if one wanted to time things and wait for a possible correction. 
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Excellent company with very strong brand. Sales up 10% YoY. 2024 guidance remains the same. Q1 guidance was recently beat. Excellent technology with sticky user base. Consumers appear to be strong. P/E not cheap, but earnings continue to grow. 

Loves their predictable earnings, they're entrenched internationally, and society keeps moving towards cashless. Visa enjoys a duopoly with Mastercard. It no longer trades at a high multiple, now only 27x forward PE at a roughly 5% growth rate.

Chugging along with double-digit topline and bottom line growth. Earnings have doubled over past 5 years. People are now travelling more, doing more online shopping. When's the last time you used cash? Exactly. That's the thesis for this name. Valuation not that expensive given the high-quality business. Yield is 0.7%.

See his comments about Mastercard. A big growth factor is cross-border travel, which is not going away. They make a lot of money here.  The valuation has declined a but, though a little expensive, but this stock is top quality. A long runway ahead.

12-month price target for Visa of $315. 12-month target for MA is $490. It's really a flip of the coin right now. Both have reasonable runway. Lots of people do pair trades, and right now that's long MA and short Visa.

He owns Visa. It's much larger, larger than all of its competition put together. Prefers its more international exposure, as that has greater growth potential. Could both become trillion dollar companies via organic growth and through potential valuation re-rating to return to mid-30 multiples.

MA is a very good competitor. Trades a few multiple points higher than Visa.

Would recommend holding. Not worried about rising consumer debt (banks assume this liability). 

Likes long-term secular growth of moving from cash to digital, will continue to grow. MA gives you a bit more international exposure, Visa is larger. At this point, Visa's performance has been a bit stronger than MA, so on technicals, MA is the better one to put fresh money into.

Outpacing S&P 500 since late 2021. Dominant player in global payments. Super solid. Long-term secular shift to cashless transactions. Over 5 years, 10% revenue growth and 14% earnings growth. Extensive network and strong brand recognition. Resilient model. Sees about 13% earnings growth going forward.

Hurt in Covid, now doing better and this will continue. Global growth in exchanging cash for plastic and in small business use. Great company. Tons of free cash. Works hard to be on leading edge of technology so it's not overtaken.

Has owned this a long time, wished he owned both. A great compounder. They reinvest their huge cash flows to buy companies and grow dividends. It benefits from inflation as people spend more. The valuations of both have never been cheap, but you get what you pay for. The remain remains large.

Shares are up a few dollars this morning and this issue has been around for a while and so so is baked into the stock. The cards are trading at a premium, but they hold a monopoly. Also, more payments are going from cash to plastic. He likes Visa. Short-term, the economy is recovering and people are travelling, which will benefit the cards. The chart looks great. Still strong.