No fewer than 13 analysts have raised their price targets
The shares of Visa Inc (NYSE: V) are up 1.2% to trade at $ 232.75 on the final check after the credit card giant reported better-than-expected fiscal year earnings and revenue in the second quarter. Visa also announced a partnership with industry colleague PayPal that will promote financial inclusion in emerging markets, as well as a partnership with Airbnb (ABNB). In response, no fewer than 13 analysts raised their price targets, with Evercore ISI’s highest coming to $ 286 from $ 245.
Today’s pop took V to a new record high of $ 236.27 today. The stocks have won five sessions in the past six days and are aiming for their fifth consecutive weekly profit. Compared to the previous year, equity increased by 34.3%.
Analysts are overwhelmingly bullish on Visa stocks, with 20 of the 23 reporting “buy” or better and the remaining three lukewarm “hold”. Today’s 12-month consensus price target of $ 259.03 was already a 12.7% premium by the end of last night.
In the options pits, sentiment is similar, depending on the 10-day call / put volume ratio of V of 3.24 on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX) . This ratio is above 85% of all other metrics over the past year, indicating a stronger than usual preference for calls.
The options traders respond to today’s options activity and intervene with full force. So far, 20,000 calls and 6,069 puts have crossed the line – five times what is currently normally seen in terms of volume. The 240 August call is the most popular, followed by the April 30 weekly 240 strike call which opens new positions.
That said, speculating on Visa stock’s next move with options could be a prudent game. The Schaeffer’s volatility index (SVI) of 23% is higher than just 14% of all other values in its annual range, which means that option players are currently pricing in relatively low volatility expectations.