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On Friday, June 13, shares of payments technology giant Visa (V) slipped 5% after The Wall Street Journal revealed that retail titans like Walmart (WMT) and Amazon (AMZN) are weighing the idea of issuing their own stablecoins. The news raised fears in the market that such digital currencies could chip away at traditional payment networks
Barclays is not buying into the panic, however. The firm called the reaction overblown and sees opportunity where others see risk. According to Barclays, while stablecoins hold undeniable promise, they are still a long way from penetrating the retail payments landscape where Visa dominates.
Even as headlines stir speculation, Barclays remains anchored in the belief that Visa’s moat is far from breached. It stands firm in its conviction that Visa’s entrenched dominance and trusted network are far from being upended. For now, stablecoins may be ambitious, but they are not a real threat just yet.
About Visa Stock
Based in San Francisco, Visa stands tall in the global payments landscape with a market capitalization of $624 billion. Operating across more than 200 countries, the company orchestrates seamless money movement and commerce, powered by VisaNet, its global transaction processing network that handles authorization, clearing, and settlement for financial institutions and merchants alike.
Over the last 52 weeks, V stock has climbed 22%, painting a picture of investor confidence. Yet in the past month, the stock has dipped 7.7%. That's a move Barclays interprets as more of a doorway than a downfall, calling it a potential buying window rather than a red flag.
Visa currently trades at 30 times forward earnings and 17 times sales. While these numbers sit well above sector norms, they fall short of V stock's five-year historical averages, suggesting room for upward reversion.
The company continues to reward its shareholders steadily, offering an annual dividend of $2.36, translating to a yield of 0.7%. Visa's latest quarterly dividend of $0.59, declared on April 29 and payable on June 2 to shareholders on record as of May 13, underlines its steady commitment to investor returns.
Visa Surpasses Q2 Earnings
On April 29, Visa released its fiscal 2025 second-quarter earnings, showing solid strength across the board. The global payments company reported revenue of $9.59 billion, reflecting a 9% year-over-year (YOY) increase and beating Wall Street’s estimate of $9.56 billion. The performance came on the back of resilient growth in payments volume, cross-border activity, and processed transactions.
Visa’s cross-border business delivered with conviction. Cross-border payment volume expanded by 13% during the quarter. This double-digit rise was not new territory for the company, which has maintained this momentum across quarters, largely due to its growing presence in emerging markets where payment infrastructure continues to develop.
Non-GAAP net income reached $5.4 billion, reflecting a 6% rise from the prior year. Adjusted EPS came in at $2.76 per share, up 10% from the previous year’s figure and ahead of Street expectations of $2.68.
Visa also unveiled a new $30 billion multi-year share repurchase program for its Class A common stock. The announcement marked a substantial capital return initiative and a long-term signal of confidence in its business fundamentals.
Looking ahead, analysts estimate Q3 2025 EPS of $2.84, reflecting a 17.4% increase YOY. For fiscal year 2025, EPS is expected to reach $11.35, growing 12.9%. Fiscal 2026 projections place EPS at $12.76, representing a further 12.4% rise.
What Do Analysts Expect for Visa Stock?
Barclays has held steady with its $396 price target on V stock, maintaining an “Overweight” rating that underscores its continued confidence in the payments heavyweight.
Mirroring that view, Truist Securities recently reaffirmed its “Buy” rating on Visa alongside a $400 price target. The firm labeled the recent market drop as an overreaction, emphasizing that stablecoins are unlikely to dent the dominance of card-based payments.
Meanwhile, Street sentiment remains strongly optimistic, assigning V stock an overall rating of “Strong Buy.” Out of the 37 analysts following Visa, 28 rate it a “Strong Buy”, four opt for a “Moderate Buy” rating, and only five analysts suggest a “Hold” rating.
The average price target of $386.31 per share represents potential upside of 14%. Finally, the Street-high target of $425 suggests that shares can climb as much as 25% from current price levels.
