12:30 PM EDT, 10/30/2024 (MT Newswires) -- Visa's (V) high-single-digit to low-double-digit volume growth guidance for fiscal 2025, supported by stable trends, is "largely reassuring" for investors, Morgan Stanley said in a note Wednesday.

The electronic payments processor is looking at stable domestic and cross-border spending trends, according to the firm.

"Importantly, the growth outlook also incorporates a meaningful step up in Rebates and Incentives, as management executes on numerous deal renewals and expansions, including with JP Morgan Chase," it said. This, alongside pricing that is expected to be completed in April should help in growth in H2 2025.

Morgan Stanley is looking for a 7% total payment volume growth for Visa for fiscal 2025, with US payment volume growth of 5%. It now projects net revenue growth at 9.8%, compared with previous growth forecast of 10.5%, as rebates and incentives offset pricing.

The firm raised its fiscal 2025 adjusted earnings per share estimate for Visa to $11.24 from $11.13, taking into account a lower tax rate and higher share buyback move. It forecasts fiscal 2026 adjusted EPS of $12.86 and net revenue growth of 11.1%.

Morgan Stanley raised its price target for Visa to $326 from $322 with an overweight rating.

Visa shares were up nearly 4% in recent trading.

Price: 292.84, Change: +10.96, Percent Change: +3.89