Visa: Strong Q1 FY23, Still Less Than 30x P/E
(Preview) Company Update (V US) (Buy)
Summary
Visa Inc. shares are currently up 3.4% after strong Q1 FY23 results overnight, but are only 6.2% higher than at 2020 year-end.
Q1 FY23 was exceptionally strong, thanks to the post-COVID rebound, with Adjusted EPS up more than 30% on an underlying basis.
Revenues from new flows and value-added services each grew by more than 20%; volumes have remained strong in January so far.
FY23 outlook has been improved, including with more cost control, and we now expect Adjusted EPS to grow at low-teens.
With Visa shares at $232.32, our forecasts indicate a total return of 94% (20.0% annualized) by September 2026. Buy.
Introduction
Visa Inc. released their Q1 FY23 results after markets closed on Thursday (January 26). Shares are up 3.4% (to $232.32) as of 3:30 pm EST on Friday, having now risen by more than 12% year-to-date.
Since we initiated our Buy rating on Visa in June 2019, shares have gained 46% (including dividends) in roughly 3.5 years, but the share price is only 6.2% higher since the e…