Visa: Why Visa Stock Should Outperform the Market in 2025, According to Wolfe Research
According to a note from Wolfe Research, Visa Inc (NYSE:V) is in a strong position for 2025. The brokerage highlights Visa's solid growth potential supported by macroeconomic tailwinds and structural drivers, identifying the company as a top pick in the payments sector. Wolfe’s optimism is fueled by strong consumer trends, resilient U.S. volume performance, and cross-border transaction growth.
Analysts noted that "Visa's CFO Chris Suh and head of investor relations Jennifer Como conveyed confidence that the fiscal year 2025 still contains conservative elements," indicating that early signals point to a strong start for U.S. volume performance and the emergence of favorable currency tailwinds.
Key factors supporting Visa's potential include diversified growth areas such as value-added services and tokenization, which are showing strong momentum. According to Wolfe, VAS (Value-Added Services) and New Flows, which account for over 30% of Visa's mix and are growing at about 20%, continue to contribute to growth, indicating double-digit growth potential in the medium term.
Analysts emphasized, "V highlighted that VAS/New Flows will continue to contribute to growth, suggesting that medium-term LDD (low double-digit) growth potential remains." Visa also expects to capitalize on pricing opportunities in 2025, including a new fee for cyber protection services in Europe, while continuing to focus on innovation through Pismo platform expansion and enhanced fraud capabilities via Featurespace.
"The Featurespace announced in September aims to extend V's fraud/risk capabilities and create expansion opportunities through financial institutions."
The report maintains a "buy" rating for Visa with a price target of $350, forecasting an upside potential of over 11% from current levels. Wolfe expects Visa to continue to outperform average transaction sizes across card categories and exceed U.S. personal consumption expenditure growth supported by stable spreads.
Wolfe believes that with these strategic advantages, Visa is poised to outperform the market in 2025, driven by the company’s ability to capture additional transaction economics and adapt to changing market dynamics.