Visa Gets Share-Price Target Cuts From Analysts

Analysts cut their price targets after Visa trims its quarterly revenue forecast for the second time.
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Analysts lowered their share-price targets for Visa  (V) - Get Report after the credit card giant lowered its revenue forecast for the quarter ending Tuesday due to the impact of the coronavirus on its business.

The pandemic has particularly hammered cardholders’ spending overseas, where the scourge began. Visa lowered its revenue growth outlook for the fiscal second quarter for the second time, to the high end of the mid-single digit range.

“As the virus has spread in the last few weeks, the impacts we saw in Asia in February are now occurring in the rest of the world, with a rapid deterioration of cross-border travel-related spending,” the company said in a regulatory filing.

RBC Capital Markets analyst Daniel Perlin trimmed his share price target for Visa to $195 from $217 but maintained his outperform rating. He foresees a "much steeper decline" in overall payment transactions and cross-border fees during the June and September quarters, according to The Fly.

Meanwhile, Credit Suisse analyst Moshe Orenbuch cut his share price target to $200 from $223, and confirmed his outperform rating.

He was influenced by Mastercard’s  (MA) - Get Report announcement last week that it too was revising its revenue growth estimate down for the second time, to the low- to mid-single digits.

Orenbuch was struck by the fact that Mastercard also is facing strong headwinds overseas.

The analyst noted that Mastercard was seeing further deterioration in cross-border transactions and was lowering volume and transaction estimates for the second time.

At last check, Visa shares stood at $164.60, down 0.59% in premarket trading.