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Friday, May 1, 2015

Stock Recommendation for May recommends Visa (V):

Visa Inc. is a payments technology company. The Company is engaged
in operating a processing network, VisaNet, which facilitates authorization, clearing and settlement of payment transactions across the world. The Company provides its services to consumers, businesses, financial institutions and governments in more than 200countries and territories for electronic payments.

Visa has reported better-than-expected results for the fiscal second quarter on Thursday.
The company reported a quarterly profit of $1.55 billion, or $0.63 per share, versus a year-ago profit of $1.6 billion, or $0.63 per share.
Its revenue increased 8 percent year-over-year to $3.41 billion from $3.16 billion. However, analysts were expecting a profit of $0.62 per share on revenue of $3.34 billion, up 7.8% over a year ago.

We expect a potential upside based on positive news:

The Chinese Government announced that it would open its domestic market to foreign card payment networks according to Reuters article:

The move should allow foreign players such as Visa Inc and MasterCard Inc, the world's two largest credit and debit card suppliers, direct access to a market valued at $6.84 trillion last year. This measure is set to end a near monopoly held by domestic player China UnionPay Co Ltd, and would allow Visa and MasterCard to challenge the state behemoth. The move is also set to resolve a longstanding trade dispute between China and the United States. In 2012, the World Trade Organization ruled that China's policies on electronic payment providers discriminated against foreign card companies. In a separate article on Bloomberg, Barclays analyst said that both Visa and MasterCard could double their purchase volumes by 2023 if they gain access to the Chinese market.

52 week high $69.98
52 week Low $48.80

The brokers estimates a consensus target of $73

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