Visa

JEME Capital is proud to present our Equity Research on Visa, the world's leading digital payments company and a foundation of the cashless world. Our report focuses on the major investment themes: duopolistic market structure alongside Mastercard, with powerful network effects and strong entry barriers; a high-margin business model, with EBITDA margin above 60% and strong free cash flow conversion; cross-border and international transactions as a structural growth driver, fueled by global mobility and e-commerce growth; and value-added services and AI-powered fraud protection, propelling Visa from a pure payment infrastructure to a data and security partner.

Despite recent market volatility driven by regulatory worries and political statements, we think the market may be pricing Visa too pessimistically relative to its long-term growth outlook. Our initiation with a Buy rating and a 12-month target price of USD 378.53 reflects Visa's compelling long-term fundamentals and structural tailwinds in digital payments.