Key Stats for Visa Stock
- Price change for Visa stock in last 6 months: 26%
- $V Stock Price as of Oct. 12: $389
- 52-Week High: $392
- $V Stock Price Target: $420
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What Happened?
Visa (V) said on Tuesday that the People’s Bank of China approved its plan to set up a bank card clearing business in the country.
Visa called it “an important milestone” toward serving China’s domestic payments market.
Visa first applied in May 2020. CEO Ryan McInerney said the company will now take the next steps the PBOC requires before it can start operating domestically.
Until now, Visa has worked with Chinese banks on dual-branded cards. UnionPay handles those payments inside China, and Visa handles them overseas.
Trump and Xi are expected to meet next month at the APEC meeting in Shenzhen. Analyst George Chen of The Asia Group said Beijing seems keen to show progress for American businesses before that meeting.
Notably, American Express got its processing license in 2020, and Mastercard’s joint venture started processing payments in 2024.
China’s consumers mostly use mobile payments through WeChat and Alipay, so Visa will enter a crowded market.
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What the Market Is Telling Us About Visa Stock
For Visa stock, this is a long-term opening, not an instant revenue boost. Further, China has been closed to Visa’s domestic business for years.
Approval gives it a path in. Visa still has steps to complete before it can operate.
Visa’s core business is strong. On its July call, fiscal Q3 net revenue rose 14% to $11.6 billion. EPS rose 11% to $3.32. Payments volume first passed $4 trillion.
Cross-border volume, excluding Europe, grew 12%. Value-added services revenue jumped 34% to $3.8 billion. Visa also bought back $4.9 billion of stock in the quarter.
Management expects Q4 net revenue growth in the high-end low double digits and full-year EPS growth should land in the low-mid teens.
There are things to watch. Visa announced job cuts in July, mostly in technology and product teams.
It also took $563 million in severance costs. And the China entry is early, with mobile wallets dominating daily spending.
Still, Visa stock now has a new growth option. Visa investors will want to see how quickly Visa can start operating after the Trump-Xi meeting.
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So what is Visa stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
