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Visa's Remaining Performance Obligations Provide Revenue Growth Visibility, UBS Says

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Visa's (V) remaining performance obligations, or RPOs, provide "a small degree of net revenue growth visibility," particularly as they relate to value added services, UBS said in a note on Monday.

The bank estimated that value-in-kind incentives contribute about 0.5% to 1% of total net revenue growth and roughly 2% to 4% of value added services.

UBS said the disclosures help investors understand "an increasing, albeit minor, portion" of Visa's future revenue growth.

Visa and Mastercard "remain well positioned" within its payments coverage, citing their "deep competitive moats and scale" and ability to deliver durable revenue growth, UBS said.

UBS reiterated its buy rating on Visa with a $410 price target.

Price: $358.40, Change: $+2.38, Percent Change: +0.67%

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