NEW YORK (TheStreet) -- Visa (V) shares are down -0.6% to $218.77 after a court denied its effort to dismiss more than 30 lawsuits by retailers seeking potentially billions in damages stemming from transaction processing fees.
Retailers such as Macy's (M), Target (TGT) and Walmart (WMT) are seeking billions in damages due to the fact that credit card companies "have obtained and maintained market power in the market for merchant acceptance of credit cards" which have led merchants "to pay excessive interchange fees," according to a joint filing from Target and Macy's earlier this month.
The judge presiding over the case emphasized that his preliminary ruling was not a ruling on the merits of the actual lawsuit.
TheStreet Ratings team rates VISA INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate VISA INC (V) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."