Visa: stock falls after BofA downgrade
(CercleFinance.com) - On Wednesday, Visa shares closed down 1%, with Bank of America downgrading its recommendation on the stock from 'buy' to 'neutral'.
In a sector note, Bank of America believes that the horizon is darkening for payment specialists such as Visa and Mastercard, which it is also downgrading, leading it to consider upside potential to be now limited, particularly in view of the strong buy positioning of many investors on the shares.
Bank of America is also concerned about the two groups' ability to maintain business growth rates in excess of 10%, as regulatory conditions tighten in some countries.
BofA's downgraded recommendation - which also reduces its target price from $305 to $297 - is fuelling the bearish trend that has been affecting the stock since early spring.
The share, which hit an all-time high at the end of March, has lost around 10% since then.
The share price has risen by only 2% since the beginning of the year, which still gives a market cap of $526bn, the 13th largest in the US.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
In a sector note, Bank of America believes that the horizon is darkening for payment specialists such as Visa and Mastercard, which it is also downgrading, leading it to consider upside potential to be now limited, particularly in view of the strong buy positioning of many investors on the shares.
Bank of America is also concerned about the two groups' ability to maintain business growth rates in excess of 10%, as regulatory conditions tighten in some countries.
BofA's downgraded recommendation - which also reduces its target price from $305 to $297 - is fuelling the bearish trend that has been affecting the stock since early spring.
The share, which hit an all-time high at the end of March, has lost around 10% since then.
The share price has risen by only 2% since the beginning of the year, which still gives a market cap of $526bn, the 13th largest in the US.
Copyright (c) 2024 CercleFinance.com. All rights reserved.