-- Visa's (V) net revenue growth is set to accelerate, driven by pricing actions, value-added services expansion, cross-border strength and Visa Direct, UBS Securities said in a note Wednesday.
With updated guidance pointing to low-double-digit to low-teens net revenue growth, Visa appears positioned to accelerate from about 11.5% last year to nearly 13% on an organic foreign exchange-neutral basis.
UBS said the strength reflects a combination of structural drivers, including expanding value-added services, ongoing pricing initiatives across multiple programs, resilient cross-border activity and steady growth in Visa Direct, which contributes about 8% to 9% of payment volumes.
The firm said Visa also remains well-positioned for both transaction and yield enhancement in areas such as agentic commerce, including tokenization and authentication services, as well as emerging opportunities in stablecoins and new payment flows.
The brokerage also highlighted a migration of Wells Fargo (WFC) to Pismo's core account ledger over the coming years as part of the bank's core modernization efforts, describing it as a notable incremental win for Visa's platform strategy.
UBS has a buy rating on Visa and raised the price target to $410 from $390.
Shares of Visa rose 9% in Wednesday afternoon trading.
Price: $336.94, Change: $+27.64, Percent Change: +8.94%