Ultimate magazine theme for WordPress.
BTC
$61,009.21
-1%
ETH
$3,848.35
-0.14%
LTC
$186.41
-2.55%
DASH
$191.40
-1.86%
XMR
$266.19
-1.13%
NXT
$0.02
-4.09%
ETC
$54.26
-0.58%
DOGE
$0.24
-1%
ZEC
$125.71
-0.31%
BTS
$0.05
+0.89%
DGB
$0.05
-0.26%
XRP
$1.13
-0.88%
BTCD
$153.26
-1%
PPC
$0.92
+5.22%
CRAIG
$0.01
-1%
XBS
$2.29
0%
XPY
$0.01
0%
PRC
$0.00
0%
YBC
$2,300.00
0%
DANK
$0.02
-1%

VISA Stock Forecast & Price Predictions for 2021, 2022-2025, and Beyond


Visa is a globally known payments giant, among Mastercard and UnionPay, with the largest market share. Visa payments are accepted in more countries than those of other payment companies. Everyone knows Visa Inc. Although the company doesn’t produce cards itself, credit and debit cards worldwide have its logo. 

Visa Inc. operates in an industry that is barely affected by global shocks; people always need food and clothes, so they make payments at least in shops. Even the coronavirus crisis couldn’t affect Visa stocks. Although its equities fell 37%, the crash was smaller than that of other companies. 

The article covers the following subjects:

The coronavirus restrictions will be lifted soon. Is it a reason for the stocks’ further appreciation? Will the price of Visa stock go up? Let’s find out!

Visa Inc. Stocks: a Brief Overview

Visa Inc. (NYSE: V) is a global payments technology company, one of the major digital payments providers. Its products and services include a transaction processing payment network VisaNet, which provides authorization, clearing, and settlement of payment transactions, value-added services, card products, and platforms. The company operates under Visa, Visa Electron, Interlink, VPAY, and PLUS brands.

Here is some data on Visa’s stocks (as of May 25, 2021):

  • Market cap: $489 billion

  • Shares outstanding: 1.9 billion

  • Public float: 1.691 million

  • P/E ratio: 47.38

  • Payout ratio: 22.98% (based on this year’s estimates)

  • EPS: $5.04 

  • Dividend Yield: 0.56%

  • Total return price range: 179.23 – 237.50

  • Annual dividend: $1.28

  • Forecast 12-month forward PEG Ratio: 2.2

  • Average volume: 9.02 million 

Visa Inc. was founded in 1958. Still, it became a publicly traded company only on March 8, 2008. Visa held the largest IPO in the US. Then, it managed to sell 406 mln shares at $44 per share and raised $17.9 billion. The stock split was done only once in March 2015 at a four-to-one ratio.

The corporation has two share classes. Class A shares are common stocks traded on the NYSE. All investors have a buyright to them. There is a dividend increase by an average of 20.92% each year.

Ahead of the IPO, the enterprise set up special Class B stocks related to the merchant lawsuits. Only financial institutions own Class B shares. These equities are structured in a way so that growth in Visa’s litigation escrow account is used as a buyback of the class A shares.

The current Visa stock quote is 222.46 US dollar.

Major Factors That Affect Visa Stock Price in 2021 & Beyond

It’s not a secret that the values of companies’ stocks depend on the same set of factors. They include internal company and industry news, company financial performance, strong demand and supply, global environment, investor sentiment, etc. 

In this section, we will discover the fundamental factors that may precisely affect the V stock forecast.

Consumer Spending

Client services, cross-border transactions, data processing, and value-added services make up an enterprise’s revenue. 

The payments company is largely affected by changes in consumer spending opportunities. The Covid-19 lockdown led to a 5% YoY fall in 2020 due to lower cross-border volumes and a drop in payment volume and processed transactions. 

Although the lockdown has been easing, there is still no clarity. The further opening of borders will support Visa stocks. In case of prolonged restrictions, the shares won’t be able to reach new highs. 

Fees

The largest part of Visa’s revenue comes from transaction fees when Visa cards are used. The company charges service fees, data processing fees, and international fees. 

An increase in fees boosts Visa’s earnings and leads to a rise in share value. In 2020, Visa and MasterCard tried to increase interchange fees for some types of purchases made by credit cards. Interchange or swipe fees are provided by merchants to banks that issue cards and credit card companies for processing card transactions. However, rising pressure from lawmakers and trade groups made the payments services postpone the initiative until 2022. 

If the company manages to increase swipe fees in 2022, the stocks’ rise will be supported. 

Technologies 

Crypto Implementation. The corporation plans to become the first payments company to launch a major network with transactions in USD Coin. Visa is testing the settlement with Crypto.com. Later this year, we can expect cooperation with other companies. If the company can reach new partnerships in the cryptocurrency industry, it will cover new markets, and its shares will potentially surge. 

AI technologies. At the beginning of 2021, the company introduced a range of services powered by artificial intelligence for immediate and more transparent payments. Such improvements support the share price. 

Visa Stock Forecast for 2021: Analysts’ Recommendations

The average 12-month forecast by 25 Wall Street analysts is $250.22, a 9.11% upward movement. The highest price target is set at $280.00; the lowest possible rate is $220.00. 24 of 25 ratings are “Buy,” with only 1 of holding. 

Ramsey El-Assal, Barclays

 

In a recent report, Ramsey El-Assal from Barclays boosted the stock price target from $250.00 to $275.00. The analyst maintained the rating at “Overweight.” 

Moshe Orenbuch, Credit Suisse 

Credit Suisse, represented by Moshe Orenbuch, has the price expectation at $280 (vs. $270 previous Visa stock outlook) with an “Outperform” rating. 

Wells Fargo & Company

Wells Fargo & Company increased its Visa stock price prediction from $240.00 to $265.00 without any rating. 

James Faucette, Morgan Stanley

James Faucette at Morgan Stanley raised the Visa share price forecast from $258.00 to $279.00 with an “Overweight” rating.

BMO Capital Markets

Analysts at BMO Capital Markets improved the Visa price target from $230.00 to $245.00. The rating is “Outperform.” 

  

Visa Stock Technical Analysis

To make a realistic forecast for Visa‘s stock, we need to identify the general market situation, global trends, and key levels. We’ll do a technical analysis of the monthly chart for those purposes.

As the chart above suggests, a global bullish trend has been developing for the last five years at least. The trade volumes indicate that trading activity had been growing until spring 2020. That means big traders were interested in raising Visa’s stock quotes. However, trade volumes have been falling gradually for one and a half years.

Two trend development stages can be singled out there:

It’s the second stage that we’re observing. It will continue until a global reversal has occurred, confirmed by a crossover of the blue trend line.

Until then, we can only talk about a local correction, indicated by the increase in trading activity on the ultimate completed red candlestick. A breakout of the support level of 214 USD marked with the red line will confirm Visa stock‘s projected fall in the near future.

Visa Stock Forecast For Next Three Months

Let’s analyze the daily chart to make a short-term forecast for three months.

The Fibo grid laid onto Visa‘s prediction chart will help us divide the global trend into a few stages. I’ve singled out three of them:

  • 1 — the trend start area located between 0 and 0.236. Approaching that area points to a high risk of the trend’s ending. The chart shows that area supported the buyer many times during the whole trend development period.

  • 2 and 3 — the red and the blue price consolidation areas located between 0.236 and 1.618 Fibonacci levels from the trend’s bottom. 0.786 Fibo projection lies between those two areas and creates powerful support for the bulls.

Visa’s price chart has retraced from the third area’s upper limit. The red support level of 215 US dollars will help us assess the potential of bearish momentum. 

The second consolidation area’s limit and a strong psychological level lie farther down, at around 205 USD and 200 USD, respectively.

On the one hand, those powerful support levels located so close suggest the bears can’t break through them; on the other hand, they might continue pressing the price if the buyers’ reaction to approaching those levels is weak. 

In the latter case, a correction target will be around 175 USD, the second area’s lower limit. A long-term ascending trend line lies there as well, and it will support the buyer. A further downward movement looks unlikely. 

The indicator analysis will help us obtain some additional signals.

The MACD chart crossed the zero line last month and continues dropping. It almost reached this year’s minimum marked with the red line on the indicator’s MAs. Crossing that level from above will suggest a high probability of the Visa to USD’s further decline.

The current slowdown of the indicator’s lines lets us presume that the stock is oversold locally. So, we may also suppose that the market will switch to a short-term bullish correction. At the same time, a bullish price movement is limited by the local uptrend’s line that started in spring 2020 (marked with the blue dotted line). That level will prevent the Visa value from recovering. The Visa stock’s price will likely retrace to 215 USD in the coming months once the level is retested from below.

Long-Term Visa Analysis for 2021/2022

Let’s do a technical analysis of the VISA price history and make a prediction for the nearest 12 months.

I plotted monthly price projections on the price prediction chart above using Bollinger bands.

A crossover of the local trend line and other signals mentioned above point to a slowdown of the price rise and an eventual consolidation at the minimum.

VISA’s future value won’t likely drop below 200 US dollars by the beginning of 2022. 

The Visa stock’s bearish potential will determine further developments. The consolidation is likely to continue near the third area’s lower limits, at around 200 USD. The market won’t be flat forever.

The bulls have every chance to update Visa’s all-time high as early as the end of 2022 if they manage to consolidate at 200 USD. Their failure to do that won’t be a disaster either since they have a good opportunity to buy Visa shares at a discount, at 175 USD. The price is unlikely to drop below that level.

Check the table below for the Visa stock‘s expected trading ranges for each month.

Month

Visa stock price

Minimum

Maximum

September

 2021

220

240

October

 2021

210

240

November

2021

205

235

December

2021

200

225

January

2022

202

227

February 

2022

205

235

March

2022

218

245

April

2022

210

237

May

2022

205

231

June

2022

205

224

July

 2022

210

235

August 2022

215

243

Visa Long-Term Trading Plan

Let’s make a trading plan for Visa based on Visa stock’s projected price fluctuations. The main objective will be trading within the third area’s channel and exploiting the stock’s volatility.

Given the corrective sentiment, the nearest level for opening a trade is at around 215 USD, the blue line.

Place Stop Loss at a safe distance, below 200 USD. 

A projected price target will be the consolidation area’s upper limit at around 235 – 240 USD. 

If we’re lucky, we will conduct two or three trades while a flat trend unfolds. I don’t recommend opening short trades as the main trend remains bullish, and the market can easily trigger short position stops.

Don’t play against the trend and follow your own risk management rules!

Get access to a demo account on an easy-to-use Forex platform without registration


Go to Demo Account

Visa Technical analysis is presented by Mikhail Hypov.

Visa Stock Forecast for 2022

How much can Visa stock grow? Visa shares aren’t subject to significant price movements. According to Wallet Investor’s price projection, the company will be able to reach a new all-time high of $273 by the end of the year. The source expects a solid uptrend. Beginning 2022 near $242, the stocks will move up towards $273 by the end of the year. 

If you check rate fluctuations month by month, you will notice that the difference between the minimum and maximum values is narrow. It signals the stability of the company and attractive opportunities for long-term investors. 

If the company succeeds in raising swipe fees, its earnings will move up. Thus, investors can expect future growth in shares, so the Visa stock projection will be proven. 

Month

Opening price

Closing price 

Minimum price

Maximum price

January 2022

242.766

244.747

242.766

244.747

February 2022

244.938

248.334

244.938

248.373

March 2022

248.413

247.557

246.559

248.413

April 2022

247.690

252.787

247.690

252.787

May 2022

253.150

256.433

253.150

256.433

June 2022

256.535

258.008

256.535

258.008

July 2022

258.080

262.051

258.080

262.082

August 2022

261.953

265.137

261.953

265.137

September 2022

265.230

265.873

265.230

265.873

October 2022

265.974

267.672

265.974

267.672

November 2022

267.959

271.382

267.959

271.389

December 2022

271.422

273.634

271.420

273.634

Source: Wallet Investor

Visa Class A Stock Forecast for 2023

In 2023, there is a rising tendency for the V stocks. And the projection looks realistic. The shares will jump above $300. The expected highest rate is $304.883. The average range between the minimum and maximum prices is $3, which means the company won’t suffer dramatic drops during the year. 

Month

Opening price

Closing price 

Minimum price

Maximum price

January 2023

274.011

276.268

274.011

276.268

February 2023

276.307

279.878

276.307

279.878

March 2023

279.813

278.915

277.989

279.813

April 2023

279.359

284.023

279.359

284.023

May 2023

284.406

287.788

284.406

287.788

June 2023

287.940

289.381

287.940

289.381

July 2023

289.667

293.400

289.667

293.495

August 2023

293.496

296.554

293.356

296.554

September 2023

296.608

297.227

296.608

297.227

October 2023

297.337

299.169

297.337

299.169

November 2023

299.304

302.814

299.304

302.814

December 2023

302.812

304.883

302.812

304.883

Source: Wallet Investor

Long-Term Visa Stock Forecast for 2025 and Beyond  

Analysts of Wallet Investor believe the bullish trend will prevail at least until the middle of 2026. As the company owns a large share of the payments market, the downtrend can occur if only another global shock like Covid-19 happens. The future price of Visa shares can reach 368.111 by December 2025. 

Month

Opening price

Closing price 

Minimum price

Maximum price

2025

January 2025

336.867

339.104

336.867

339.104

February 2025

339.326

342.666

339.326

342.715

March 2025

342.438

341.787

340.900

342.462

April 2025

342.064

347.265

342.064

347.265

May 2025

347.417

350.554

347.417

350.554

June 2025

350.909

352.222

350.909

352.222

July 2025

352.441

356.333

352.441

356.382

August 2025

356.287

359.225

356.190

359.225

September 2025

359.438

360.220

359.438

360.220

October 2025

360.239

362.053

360.239

362.053

November 2025

362.538

365.592

362.538

365.592

December 2025

365.620

368.111

365.620

368.111

2026

January 2026

368.269

370.445

368.269

370.445

February 2026

370.621

374.113

370.621

374.136

March 2026

373.954

373.286

372.317

373.997

April 2026

373.412

378.668

373.412

378.668

May 2026

378.779

380.440

378.779

380.440

Source: Wallet Investor

What will Visa be worth in 10 years? Even analysts find it difficult to answer. Please consider that such long-term predictions are approximate and subject to constant review due to many uncertainties. Source: Wallet Investor

A Retrospective Look at Visa’s Price History

Historical accuracy is vital when defining the projected growth rate. If you look at the whole chart (beginning in 2008), you will notice that Visa stocks don’t suffer significant price volatility. The share price is stable, which makes Visa shares a favorable long-term investment. Let’s look at the most crucial price fluctuations. 

The first noticeable price drop happened in December 2018, when the Nasdaq, Dow Jones, and S&P 500 survived the worst month since 2009. The stock market reacted to the US-China trade war, the risks of a government shutdown, the falling global economic growth, and worries about the Fed’s monetary policy. Visa shares were trading below $122 on December 24, the lowest level in 7 months. However, it became a starting point for the following uptrend. 

2019 was quite stable for the company. Shares set new highs despite some declines. On February 19, 2020, the price was at $214, the threshold the company reached next time only in August 2020. 

Why was Visa stock down? We all know what happened to the world in February 2020 – the coronavirus. Visa shares weren’t an exclusion during the global stock crash. The price plunged from $212.25 to $135.74. March 23 became a turning point for the price – a sharp bearish trend was replaced by an upward movement, which was in force until September 2020. 

The following decline wasn’t as dramatic as in February and March, but it pulled the share rate below $200 again. Wall Street sell-off and the announcement that the company planned to acquire the fintech startup YellowPepper pulled the price down.

The price started recovering on October 28 when the corporation reported its fourth-quarter financial results. The report highlighted a quarterly revenue fall, cross-border transaction volume’s decrease, and fiscal earnings decline. However, the number of processed transactions rose by 2 percent, and the adjusted earnings per share were better than expected ($1.12 vs. $1.09). Overall, Visa Inc. performed better than anticipated between July and September. As a result, stocks jumped by 3.2 percent.

The financial outlook highly impacts Visa shares. According to the fiscal year 2021 earnings report for Q1, net revenue growth dropped by 6% YoY, while net income declined by 4% YoY. As a result, the shares moved down.  

Is It Good to Invest in Visa (V)?

Visa’s future is promising. Visa shares are a good long-term investment. If you are an intraday trader, the lack of significant price fluctuations can be a disadvantage. However, if you want to invest in a stable asset, invest in Visa shares as the buy or sell question won’t arise.  

Year

Average

Low

High

2021

$232.46

$230.7

$234.59

2022

$252.29

$234.86

$270.94

2023

$278.35

$272.98

$287.3

2024

$296.09

$289.07

$301.07

2025

$305.74

$301.92

$308.63

2026

$263.68

$212.83

$302.61

2027

$213.34

$205.62

$215.22

2028

$222.61

$204.31

$233.73

2029

$225.31

$219.8

$229.96

2030

$221.55

$216.77

$233.95

Source: AI Pickup LLC

Stock trading is a challenging activity. A lack of volatility is not a guarantee of profitable trades. We recommend you practice on a demo account before entering a real market. A Liteforex demo account is a great way to train. A wide range of instruments and technical indicators, along with real market conditions, will allow you to gain expertise. 

Visa Price Prediction FAQ

Information in this article does not provide investment advice. The data and opinions are collected from multiple sources. Thus, a possibility of inaccuracy exists. Before investing, do your own research together with fundamental and technical stock analysis.

Price chart of V in real time mode

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

Rate this article:

{{value}} ( {{count}} {{title}} )



https://fbs.com/?ppk=forexplatform&lang=en

Source link

Comments are closed, but trackbacks and pingbacks are open.