Daiwa Securities has shifted its rating on Visa (V) from Neutral to Outperform and set a price target of $370.00, reflecting what the firm describes as an improved medium- to long-term risk/reward profile after recent declines in the share price. At the time the upgrade was released, the stock was trading near $333.84, while analyst targets gathered by InvestingPro span a range from $305 to $450.
The broker's upgrade coincides with a broader pattern of positive analyst activity. InvestingPro data indicate that 22 analysts have increased earnings estimates for Visa in the upcoming period, and its Fair Value assessment currently rates Visa as trading at fair value.
Daiwa highlighted several drivers it expects will push Visa's results above consensus. Central to the thesis are increased demand for value-added payment services tied to major global sporting events such as the Olympics and the World Cup, and the boosting effect of greater tax refunds on consumer spending. The firm points to Visa's strong financial base as supportive evidence, noting the company's trailing twelve-month revenue of $41.39 billion and year-over-year growth of 12.47%.
Regulatory dynamics also factor into Daiwa's view. The analysts flagged an expectation of reduced regulatory pressure, citing an anticipated compromise proposal on credit card regulations from the U.S. administration led by President Donald Trump. Visa's positioning within the Financial Services industry and its 97.78% gross profit margin were presented as strengths that should help the company navigate any regulatory adjustments.
Daiwa also addressed investor concerns around stablecoins, a perceived competitive threat to Visa's traditional payments franchise. The firm expects that as Visa's services tied to crypto and stablecoin activity gain adoption, they will present additional avenues for revenue rather than solely representing downside risk.
Visa's market metrics underpinned the analysts' confidence: a market capitalization of $636.3 billion and a return on equity of 54% were cited as evidence of the company’s profitability and capacity to adapt.
Additional analyst actions and recent results
The Daiwa upgrade follows strong reported quarterly results from Visa. In the first quarter of fiscal year 2026 the company posted earnings per share of $3.17, topping the $3.14 forecast. Revenue for the quarter reached $10.9 billion, exceeding the $10.68 billion estimate.
Market participants reacted with follow-on analyst coverage. Cantor Fitzgerald reiterated an Overweight rating and maintained a $400 price target. TD Cowen kept its Buy rating and a $416 target, citing robust fundamentals and a stable consumer backdrop. Compass Point raised its price target to $443, pointing to resilient growth despite a spending slowdown that the company observed between the third and fourth calendar quarters of 2025.
Collectively, these changes reflect continuing analyst confidence in Visa’s ability to deliver profitable growth amid a mix of event-driven tailwinds, strong core metrics, and an evolving regulatory outlook.
Where to find deeper analysis
For readers seeking more detailed financial modeling and a fuller breakdown of Visa’s metrics and outlook, a comprehensive Pro Research Report is available through InvestingPro.