Blue-Chip Visa Sees Bull Notes Despite Abandoned Merger

Jefferies upgraded Visa stock to "buy" from "hold"

Deputy Editor
Jan 13, 2021 at 10:25 AM
facebook twitter linkedin

Blue-chip stock Visa Inc (NYSE:V) is up a modest 0.6% at $210.09 at last check, even after abandoning its $5.3 billion merger deal with financial technology company Plaid. The scrapped deal comes amid a U.S. government lawsuit aimed at stopping the proposed transaction on antitrust grounds.

Likely propping up the stock today is an array of bull notes, with Jefferies upgrading V to "buy" from "hold." The firm called it a "high-quality recovery play" after a "rare stretch of underperformance," adding in a price-target hike to $250. KBW also chimed in with a $250 target, while Keybanc upped its own to $225. 

Jefferies is joining a bullish majority coming into today, with 21 of the 25 in coverage sporting a "buy" or better rating. Plus, the 12-month consensus price target ahead of today stands at $234.23 -- an 11.5% premium to current levels.

So far in 2021, Visa stock has been cooling off a bit since its Dec. 30 all-time high of $220.39, closing five of the last seven sessions lower. Nevertheless, V's 50-day moving average has contained the pullback, and the stock remains up 26% in the last nine months. 

Now could be a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per V's Schaeffer's Volatility Index (SVI) of 27%, which sits in the 15th percentile of its annual range. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners