Visa Faces $372 Price Target Cut, Blocks Prosa Deal and Launches Visa & Main
Truist Securities cut Visa's price target to $372 from $374 after raising other revenue assumptions but forecasting higher operating expenses. Visa launched U.S.-focused Visa & Main for small businesses and had Mexico block its bid for a 51% stake in Prosa, while AI-driven sector worries weighed on its shares.
1. Truist Lowers Price Target to $372
On February 10, Truist Securities trimmed its price target on Visa to $372 from $374, citing elevated marketing services and a more favorable foreign exchange outlook that boosted other revenue projections, which were offset by higher-than-expected operating expenses in its updated financial model.
2. Visa & Main Platform Launches for Small Businesses
On February 5, Visa introduced Visa & Main, a U.S.-focused platform structured around Business Capital, Business Connect and Business Essentials, aimed at helping small businesses access funding, reach customers and adopt digital payment tools through local, community-based activations.
3. AI-Related Market Headwinds Affect Share Performance
Recent viral market commentary highlighting AI risks sparked selling pressure in financial stocks, with Visa’s shares underperforming as investors reassessed technology sector vulnerabilities and potential downside risks.
4. Mexican Regulators Block 51% Prosa Acquisition
Mexico’s antitrust authority blocked Visa’s bid to acquire a 51% stake in Prosa, citing competition and data protection concerns and delaying the company’s planned expansion of its payments network in the region.