VISA Inc. Stock Price Analysis: Will V Stock hit $300 in 2023?

The business of Visa, Inc. is offering online payment services. Through the exchange of value and information across a worldwide network of customers, retailers, financial institutions, companies, alliance partners, and governmental organizations, it also promotes international trade. It provides global ATMs, debit cards, credit cards, prepaid items, and business payment solutions. Dee Hock established the business in 1958, and it has its main offices in San Francisco, California.

A group of US banks came together to establish Visa Inc., an international financial services firm with headquarters in the US. It is the main payment processor outside of China and the second-largest payment processor globally. In 2021, it held a market share of almost 50% of the total number of transactions excluding China. In one of four secure data centers located in strategic areas of the world, transactions are processed. 

The data centers may function independently of one another and are fortified against internal and external threats, both physical and digital. This gives the system enough redundancy. The business will be able to perform more than 30,000 transactions per second by 2022, making it the most practical option in the majority of use-case scenarios.

Bank of America (BofA) established Visa in 1958 as the BankAmericard credit card program. In 1966, BofA started issuing licenses for the BankAmericard program to other financial institutions in response to rival Master Charge (now Mastercard).

Prices:

The NYSE: V stock of Visa has grown 13% YTD, compared to the S&P500’s 15% YTD growth. Furthermore, at $236 per share, it is now trading 12% below Trefis’ assessment of Visa’s fair value of $267. In the second quarter of FY2023 (FY Oct-Sept), the firm surpassed consensus expectations, with net revenues (revenues minus client incentives) rising 11% year over year to $7.99 billion. It was brought on by a 7% increase in services revenue, a 10% increase in data processing revenue, and a 24% increase in income from foreign transactions. 

In the first half of FY2023, the top line climbed 12% year-over-year to $15.92 billion. Growth in each of the three core metrics—payments volume, switched transaction volume, and cross-border volume—was the main driver.

We anticipate a similar pattern to continue in Q3 going forward. Significantly, the $8.07 billion and $2.11 billion consensus projections for Q3 revenues and profits, respectively. In all, it is predicted that Visa would generate $32.9 billion in revenue in FY2023. Furthermore, Visa’sV -1% adjusted net income margin is anticipated to rise from 51% to around 55% over the course of the year. It’s expected to have an adjusted net income of $18.06 billion and EPS of $8.61 per share year. This results in a valuation of $267 when combined with a 31x P/E ratio.

Analysis of Stock:

With 44M shares outstanding and a market capitalization of $491.13B, Visa, Inc.’s stock price finished at $236.44. Visa, Inc. trades under the symbol V on the New York Stock Exchange. The price of Visa, Inc. has increased -1.02% over the last day. The current stock price forecast for Visa, Inc. is optimistic. The trailing-twelve-month dividend rate for Visa, Inc. is $ 1.642550 per share, with a dividend yield of 0.01%.

The consensus price objective among the analysts that are providing 12-month price projections for Visa Inc. is 268, with a range of estimates between 220.00 and 300.00. From the most recent price of $236.44, the consensus estimate reflects an increase of +13.35%.

History:

On March 18, 2008, Visa conducted its first public offering (IPO). The business sold 406 million shares at a price of $44 per share, above the anticipated range of $37 to $42 per share, and raised $17.9 billion, making it the biggest IPO in American history. 

Shares of Visa began trading at $15.77 and ended the day at $20.86. V started at $12.75 and ended at $13.11 on December 1st, 2008. 

In 2011, the Visa (V) stock had a respectable year. It started at $25.85 on January 1 and ended at $25.16. It started out at $21.75 and ended up costing $21.39 on June 30. The stock started trading at $23.98 and ended the day at $25.38 on December 1, 2011. The stock debuted on January 1 at $25.30 and opened on December 1 at $37.50, after increasing significantly throughout the year, making 2012 a highly successful year.

The Visa stock price on January 1st, 2016 fluctuated between $74.08 and $72.39. It started at $74.50 and ended at $78.05. On June 30. The stock started trading at $77.57 and ended the day at $78.02. The stock had a great year in 2017. It started at $82.90 on January 1 and ended at $82.71. On June 30, it started out at $94.40 and ended up costing $99.56. It had a high of $101.18. It started at $112.38 and ended at $114.02 on December 1st, 2017. 

For Visa and its stockholders, 2021 was also a very strong year. The stock’s price began on January 1st at $220.13 and ended the day at $193.25. It began trading at $234.20 on June 30 and ended at $246.39. The stock began trading at $196 on December 1, 2021, rose as high as $219.73, and then fell as low as $216.71. 

The Visa stock began trading at $217.52 on January 1st, 2022, reached a high of $228.12, and ended the year at $207.37.

Prediction:

  According to our forecast for the price of Visa stock in 2024, we anticipate that shares will trade for a minimum of $341.69 and a high of $367.4. $353.44 is projected to be the yearly average price. Investors may choose the ideal times to purchase and sell throughout the year by using the average price as a benchmark. 

According to our 2025 Visa stock price projection and prognosis, the V stock will trade at a minimum price of $476.42 and a maximum price of $553.27, respectively. The average price of the V stock should be $463.3, if events go as expected.