Shares of Visa ( V) closed at $133.91 Thursday, returning 33% year-to-date, following last year's 45% return. The shares trade for 19 times the consensus 2013 EPS estimate of $7.16. Sakhrani's price target of $150 implies 12% upside for Visa. Analysts polled by Thomson Reuters estimate that Visa will report third-quarter earnings of $1.49 a share, declining from operating EPS of $1.56 during the previous quarter, but rising from $1.27 a year earlier. Sakhrani estimates that Visa will report third-quarter earnings of $1.54 a share, with full-year EPS estimates of $6.50 for 2012 and $7.42 for 2013. The analyst said that for Visa and MasterCard ( MA), third-quarter volume figures reported through August "suggest that volumes are trending in line to slightly better than our expectations for the quarter." Sakhrani said "for Visa, we have incorporated 4% year/year total payments volume growth on a constant currency basis for C3Q12, which factors in the headwind on U.S. debit from the Durbin Amendment and compares to about 6% in C2Q12." Sakhrani expects Visa's operating margin to improve to 59.2% in the third quarter, from 58.1% in the second quarter, and 57.2% in the third quarter of 2011. V data by YCharts
Interested in more on Visa? See TheStreet Ratings' report card for this stock.