Broker recommendation 20230127: Visa

*One Stock Before the Bell*

*Visa Inc (NYSE: V)*
$224.71 (8.16% YTD)

Visa operates digital payments networks and manages global financial services. 48.35% of its revenue comes from *Data Processing*, 44.41% from *Services*, and 36.89% from *International Transactions*. Crucially, Visa has a *debit-focused portfolio, with 56.20% of revenue coming from Debit programs*. This provides Visa with some cushion even during economic downturns as *debit card users are not allowed to spend money that they do not have in their bank accounts*. *Asia's continued re-opening* should also help boost cross-border payment volume.

*FY2023 Q1 EPS and revenue* grew by 20.44% YoY and 11.91% respectively. Visa has *beaten EPS estimates in 12 straight quarters*. The stock looks attractively valued at a *blended forward P/E ratio of 25.8x*, a *12% discount* to its 2Y average P/E.