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Pro Analysis

Buy Visa for growth at reasonable price: JPMorgan

A customer enters their pin number while making a chip and pin payment using a Visa payment card.
Simon Dawson | Bloomberg | Getty Images
A customer enters their pin number while making a chip and pin payment using a Visa payment card.

Investors should buy Visa on the company's premium business model and the ability to leverage its scale, JPMorgan says.

"Visa is the number 1 credit and debit network worldwide and benefits from the ongoing global secular shift toward card-based and electronic payments," JPMorgan's Tien-tsin Huang wrote in a note to clients Monday.

He added, "Visa's business is characterized by recurring revenues, high incremental margins, low capital expenditures, and high free cash flow."

The analyst resumed coverage on the credit card firm at an overweight rating with a $88 price target, representing 10 percent upside from Friday's close.