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Cantor Fitzgerald Reaffirms Overweight Rating on Visa (V) After Earnings Beat

Visa Inc. (NYSE:V) ranks among the best stocks for a couch potato portfolio. Following the fiscal second-quarter results, Cantor Fitzgerald reaffirmed its Overweight rating and $400 price target for Visa Inc. (NYSE:V) on April 29. The payments giant posted net revenues of $11.23 billion, more than the Street’s expectation of $10.74 billion. The company’s adjusted earnings per share came in at $3.31, exceeding the consensus forecast of $3.10.

During the quarter, consumer spending bucked broader macroeconomic worries amid heightened tensions in the Middle East, while payment volume increased. In a post-earnings call, CEO Ryan McInerney stated that Visa Inc. was keeping a careful eye on the situation in the region. The company claimed that a number of factors, including increased commercial travel volumes and stronger U.S.-bound demand associated with the FIFA World Cup, would offset the decline in cross-border travel.

At the same time, Visa Inc. finance chief Chris Suh told Reuters that the company is actively investing in organic growth and buyouts, with share repurchases proving Visa’s “ability to have a balanced capital allocation strategy where we return excess free cash flow to clients.”

Visa Inc. is a digital payments technology company that operates a global payment network, connecting consumers, merchants, and financial institutions to facilitate electronic transactions.

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