On Wednesday, Visa Inc . (NYSE:V) experienced a price target reduction from $275 to $251, while its stock rating remained unchanged at Neutral. This adjustment follows the company's announcement of unsatisfactory financial results for the third fiscal quarter.
Visa's growth in U.S. volume was reported at just +5%, a figure that is not expected to surpass the growth of Personal Consumption Expenditures (PCE) for the quarter. The performance suggests a potential slow-down in the transition from cash to card payments in North America.
Visa's recent quarterly report indicated a deceleration in growth, which could raise concerns among investors regarding the company's short-term prospects. The reassertion of the full-year revenue growth guidance at a low double-digit percentage, adjusted for constant currency, appeared to mitigate some of the more significant worries, despite a further slowdown observed in July.
The company's forward-looking statements, particularly regarding the fourth fiscal quarter, may be seen as overly optimistic in light of the current financial data. The revision of the price target by Mizuho reflects a cautious outlook on Visa's financial trajectory for the fiscal year 2024 and beyond.
The adjustment in Visa's price target is based on the latest quarterly figures and market conditions. The revised estimates for fiscal year 2024 and the medium-term financial outlook suggest a more conservative expectation for the company's performance in the coming periods.
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