Mizuho has lifted its rating on Visa from Neutral to Outperform, boosting the price target to $425. This bullish shift stems from the bank’s revised outlook on card penetration in the U.S., which it now sees at just 75%, rather than the previously assumed 80-90%. That lower baseline signals a much longer runway for Visa to grow its card network, especially as consumers continue migrating from cash to digital payments.
🌍 Visa’s performance in high-penetration markets like Canada and the Nordics, where cards dominate over 90% of transactions, reinforces the argument that the U.S. still has meaningful upside. Mizuho is also taking note of Visa’s strategic initiatives to drive usage in underpenetrated verticals like small business and government disbursements.
💰 From a dividend standpoint, Visa continues to impress. The company has raised its dividend for 16 consecutive years, showcasing a strong commitment to shareholder returns. Its current payout stands at $2.36 annually, translating to a yield of about 0.65%. With a conservative payout ratio near 22%, there’s room for continued dividend growth without compromising capital investments.
💡 Mizuho’s upgrade reflects growing confidence in Visa’s ability to capitalize on long-term secular trends in digital payments, with valuation multiple expansion from 28x to 31x FY26 earnings estimates signaling market enthusiasm.