Mizuho raised Visa's price target to $425 due to potential growth in card usage

Visa Inc. is among the best FAANG stocks to buy according to Mizuho analysts who raised their price target from $359 to $425 on June 5. The analysts highlighted Visa’s potential for continued growth in cash-to-card conversion rates, anticipating better volume growth in the coming years.

Since the pandemic, spending has shifted away from card-based categories, impacting Visa’s growth. However, this trend is beginning to reverse, with potential for extended growth in the U.S. cash-to-card conversion market. Visa’s strong performance in regions like Canada and the Nordics further supports potential expansion beyond personal consumption expenditures.

Visa Inc. is a global payments technology company operating one of the world’s largest electronic payment networks. Mizuho analysts have upgraded Visa from Neutral to Outperform, citing expanding card usage potential and future growth in cash-to-card conversion rates in the United States.

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Read more at Yahoo Finance: Mizuho Boosts Visa Price Target, Cites Expanding Card Usage Potential