Mizuho Downgrade Pressures Blue-Chip Stock Lower

The brokerage bunch was optimistic towards V coming into today

Digital Content Manager
Jan 7, 2022 at 10:17 AM
facebook twitter linkedin

The shares of Visa Inc (NYSE:V) are down 1.4% to trade at $216.62 at last check, after the financial services concern received a downgrade from Mizuho to "neutral" from "buy," as well as a price-target cut to $220 from $255. The analyst in question cited competition from buy-now-pay-later names such as Plaid and FedNow, as well as Covid-19 impacts on the cash-to-card runway, which makes up roughly 45% of the company's revenue growth.

Analysts were optimistic towards Visa stock coming into today, with 22 of 23 in question carrying a "buy" or better rating. Plus, the 12-month consensus target price of $272.15 is a 25.4% premium to current levels.

The equity has staged an impressive bounce off its Dec. 1 annual low of $190.10, though this rally lost momentum at the 180-day moving average earlier this week. The 20-day moving average could keep this pullback in check, however. Plus, the shares are testing a familiar floor at the $216 today. Year-over-year, V is just above breakeven. 

Options traders have been pessimistic towards Visa stock of late. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.73, which stands higher than 84% of readings from the last 12 months. This means short-term options traders have rarely been more put-biased.




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