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Baird analyst David Koning told investors in a note Wednesday that they are designating Visa (NYSE:V) as a Fresh Pick, a list of stocks the firm expects to outperform.
The analyst, who has an Outperform rating and $290 price target on the stock, said in his note that “trends through May suggest FQ3 estimate upside.”
“Volumes, transactions, and cross-border volumes were all ahead of our estimates. If June holds up similar to those levels, we think FQ3 revenue could be ~2%+ above us (we currently model +15% organic constant-fx),” explained Koning.
“We are designating Visa as a Fresh Pick. Core operating metrics were solid through May (per Visa’s update) and we believe consumer spending has held in quite nicely (per several companies’ comments at recent conferences),” he added.
Baird sees cross-border travel as still having room for recovery, with US inbound travelers around 70% of 2019 levels.
“Visa likely remains quite resilient in a recession-scenario, with purchase volume still growing in C2009/C2020. We like the stock as cross-border, inflation, and smaller ticket resurgence provide ongoing growth accelerators (when many tech companies are hitting tough comps).”
