Visa (V) Stock Rises 4.2% After BofA Securities Upgrades to Buy Rating

TLDR

• BofA Securities upgraded Visa stock from Neutral to Buy with a $382 price target, citing attractive return potential after recent underperformance
• The stock jumped 4.2% in morning trading following the upgrade announcement
• Visa’s valuation is near a 10-year low, which analysts attribute to overblown disruption concerns and rotation into AI stocks
• BofA views stablecoins as an opportunity rather than a threat for Visa’s business model
• Visa announced new product innovations including stablecoin integration and AI-enhanced commerce features

Visa shares climbed 4.2% in morning trading after BofA Securities upgraded the payment processor from Neutral to Buy. The firm set a price target of $382.00.

Visa Inc., V

The upgrade comes after a period of underperformance for the stock. BofA Securities says this created an attractive entry point for investors.

Analysts pointed to Visa’s current valuation as a key factor in the upgrade. The stock is trading near a 10-year low multiple.

BofA Securities called it “a compelling opportunity to own one of the best businesses in the world at a reasonable multiple.” The firm believes concerns about disruption have been overblown.

The research firm sees the recent weakness as driven by rotation into AI and risk-on stocks. This shift pulled capital away from established payment processors.

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Stablecoins Viewed as Opportunity

BofA Securities took a contrarian view on cryptocurrency-based payment methods. The firm sees stablecoins as an opportunity for Visa rather than a competitive threat.

This perspective differs from some market concerns about digital currency disruption. The analysts consider Visa’s regulatory and litigation risks manageable.

The price target of $382.00 represents a 17% upside from the stock’s price of $325.73 at the time of the upgrade. This sits between analyst price targets ranging from $305 to $450.

Visa has posted negative returns over the past six months with a decline of 12.42%. However, the company maintains revenue growth of 11.34%.

New Product Innovations Announced

Visa unveiled new product initiatives alongside the analyst upgrade. The company plans to integrate stablecoins within its existing payment systems.

The payment processor also announced plans to use artificial intelligence to enhance commerce. These moves show Visa adapting to emerging technologies.

The stock is up 8.6% since the beginning of 2025. At $341.42 per share, it trades near its 52-week high of $373.31 from June 2025.

Visa’s shares are not typically volatile. The stock has only had two moves greater than 5% over the last year.

The company reported fourth-quarter earnings that slightly exceeded expectations. Visa achieved earnings per share of $2.98, topping the forecast of $2.97.

Revenue came in at $10.7 billion, surpassing the expected $10.61 billion. The company holds a market capitalization of $622.87 billion.

UBS also raised its price target for Visa to $425 from $415. The firm maintained a Buy rating based on strong growth outlook.

Visa provided fiscal year 2026 guidance anticipating low double-digit foreign exchange neutral net revenue growth. The company continues to expand internationally with planned operations in Syria and a move of its European headquarters to London’s Canary Wharf in 2028.