Freedom Capital Markets moved Visa Inc. (NYSE: V) to a Buy rating from Hold on Monday and lifted its price target to $375 from $360. The firm used a 25x price-to-earnings multiple applied to forward earnings per share of $14.95 to arrive at the new target, with the forward EPS covering the second quarter of fiscal 2027 through the first quarter of fiscal 2028.
The upgrade follows Visa's fiscal first-quarter 2026 financial report, which met expectations and showed accelerating top-line momentum. Revenue was $10.9 billion, up 15% year-over-year and about 2% ahead of consensus. That quarterly increase also outpaced the company's 12.47% revenue growth over the last twelve months, supporting the view of stronger near-term performance for the $598.6 billion market capitalization company.
On profitability, adjusted net income rose 12% year-over-year but trailed revenue growth. The gap reflects higher operating expenses, which increased 16% year-over-year, and a 100 basis point rise in the effective tax rate. Adjusted earnings per share were $3.17, a 15% year-over-year gain and slightly above the consensus estimate.
Visa's share repurchase program contributed to the stronger per-share result by reducing diluted share count and supporting EPS growth despite the slower expansion in adjusted net income.
Additional reported figures showed adjusted earnings before interest and taxes (EBIT) of $7.51 billion, ahead of the Street estimate of $7.41 billion. Net revenues of $10.9 billion surpassed the FactSet consensus of $10.684 billion, while the adjusted EPS of $3.17 outperformed the $3.14 consensus.
Market participants and research firms reacted to the quarter with a cluster of positive responses. Cantor Fitzgerald reiterated its Overweight rating and kept a $400 price target. TD Cowen maintained its Buy rating and set a $416 price target, citing strength across Visa's Value-Added Services and Commercial and Money Services segments. Daiwa Securities upgraded Visa to Outperform and set a $370 target, while Compass Point raised its target to $443 and kept a Buy rating, noting Visa's resilience in the face of a spending slowdown.
InvestingPro data referenced by analysts shows a Strong Buy consensus rating (1.32) and indicates 22 analysts have recently revised earnings estimates upward, reinforcing the favorable analyst tone following the quarterly release.
Taken together, the rating moves, the reported quarter and the cluster of upward price-target revisions reflect broad analyst support keyed to better-than-expected revenue growth, modest EPS upside and margin dynamics influenced by operating expense and tax-rate trends. The Freedom Capital Markets upgrade and price-target methodology were explicitly tied to the 25x forward P/E applied to the $14.95 forward EPS estimate covering the stated fiscal quarters.