Truist Begins Coverage of Visa (V) with Buy Rating

On June 2, Truist Securities initiated coverage of Visa Inc. (NYSE:V) with a Buy rating and a $400 price target, citing strong fundamentals and a resilient long-term outlook. The firm launched its broader coverage of the Payments and FinTech space, expressing confidence in industry leaders despite growing concerns around emerging payment technologies.

In its debut note, Truist emphasized that fears regarding real-time payments, stablecoins, and potential threats to traditional networks are overstated. The analyst argues that while these innovations are gaining traction, they are unlikely to significantly disrupt Visa’s business model in the foreseeable future. Visa Inc. (NYSE:V)’s dominant position in global payments, supported by its scale, trusted brand, and deep partnerships across financial institutions, gives it a durable competitive edge. Truist sees similar strengths in Mastercard (NYSE:MA), recommending both stocks as core holdings for investors seeking exposure to digital payments growth.

Concerns about a possible deceleration in cross-border revenues are also seen as overblown. According to Truist, underlying trends in travel and global commerce remain supportive of continued volume expansion. Visa’s ability to adapt to evolving consumer behavior and leverage new technologies while preserving its profitability is a key factor behind the firm’s bullish stance. The initiation underscores Truist’s belief that Visa remains a high-quality asset, well-positioned to benefit from secular trends in electronic payments despite the noise surrounding potential disruptions.

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Disclosure: None.