On Tuesday, Seaport Global Securities analyst upgraded Visa (NYSE:V) stock, trading on the New York Stock Exchange (NYSE:V), from Neutral to Buy and established a price target of $359.00. Visa's enhanced focus on the U.S. market, which is expected to drive revenue and earnings per share above consensus levels this year, was cited as the primary reason for the upgrade.
Analyst pointed out that Visa's significant U.S. exposure is a key theme for 2025, and the company's forthcoming Investor Day is anticipated to serve as a positive catalyst for the stock. The analyst's outlook suggests confidence in Visa's potential to surpass market expectations in the upcoming financial period.
In contrast, analyst downgraded Mastercard (NYSE:MA) to Neutral from Buy, acknowledging that while the story for Mastercard remains positive, the stock is currently seen as fairly valued. The analyst believes that Mastercard's greater international exposure compared to Visa could limit its revenue upside in 2025. Moreover, the lack of an identifiable catalyst for Mastercard was noted as a factor in the downgrade.
The shift in ratings between the two payment processing giants reflects Seaport Global Securities' strategic preference for Visa in the current year. The firm's analysts project a more favorable performance for Visa, given its domestic market focus, which is aligned with Seaport Global's investment themes for 2025.
Investors and market watchers will be keeping a close eye on Visa's upcoming Investor Day, which now carries heightened significance following the upgrade. The event is expected to provide further insights into the company's strategy and performance prospects, which could influence the stock's trajectory moving forward.
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