Visa (V) Rated Outperform by Baird After $500M Escrow Financing Deal

Visa Inc. (NYSE:V) ranks among the best most active blue chip stocks to buy now. On December 24, Baird reiterated its Outperform rating on Visa Inc. (NYSE:V) with a $425 price target based on the company’s announcement of a $500 million financing for its litigation escrow account, which will result in revisions to the rate of conversion of its class B-1 and B-2 common stock into class A common stock.

According to Baird’s analysis of the arrangement, the litigation escrow funding establishes a pool for bank-covered litigation while also reducing bank stakes in Visa Inc. (NYSE:V) by cutting share conversion rates.

Baird maintained optimism around Visa Inc. (NYSE:V), dubbing it a “high-quality compounder” that is trading at its 2022-2025 relative low next-twelve-months PE ratio versus the S&P 500.

Additionally, Visa Inc. (NYSE:V) has widened its USDC stablecoin settlement capabilities to US financial firms, allowing selected banking partners to settle payments with Circle’s digital dollar stablecoin.

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

While we acknowledge the potential of V to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than V and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.