Core Viewpoint - The article discusses the preliminary results of Enel SpA for 2025, indicating a focus on growth and investment opportunities in the energy sector [1]. Group 1: Company Analysis - Enel SpA is being analyzed following its 2025 preliminary results, suggesting a positive outlook for the company [1]. - The previous analysis highlighted a "Third Growth Engine," indicating a strategic focus on long-term growth and income-oriented investments [1]. Group 2: Investment Perspective - The article is aimed at buy-side hedge professionals who conduct fundamental analysis across various sectors in developed markets, emphasizing the importance of thorough research in investment decisions [1].

Core Insights - Visa and Mastercard are making progress in accessing the Chinese payments market through partnerships, with Visa's latest deal involving a connection between Visa Direct and UnionPay's MoneyExpress platform [1][3] Market Potential - China's payments market is projected to reach $47 trillion by 2026 and exceed $70 trillion by 2031, indicating significant growth potential [2][6] - Visa holds a 39% share of the global credit card market, while UnionPay has 34%, and Mastercard has 24%, but their shares in China are minimal compared to UnionPay's dominance [2] Partnership Details - The Visa and UnionPay partnership will allow Visa customers to send cross-border remittances and business-to-consumer payouts to over 95% of UnionPay International debit cardholders in mainland China [3] - The connection is expected to be operational in the first half of the year and will support various payment needs, including freelancer payouts and family remittances [5] Industry Context - China is recognized as one of the most advanced real-time payments markets globally, with a mobile-first consumer base that has widely adopted digital payments [4] - The collaboration between Visa and UnionPay is seen as a strategic move to navigate the regulatory challenges and expand their reach in the Chinese market [6]

Core Insights - Walmart has officially reached a market cap of $1 trillion, marking its ascent into the elite trillion-dollar club, a significant milestone for the retail sector [5][21] - Two other companies, JPMorgan Chase and Visa, are identified as having the potential to follow Walmart into this exclusive group, despite being from the financial sector rather than technology [4][12] Walmart's Market Position - Walmart's size provides a sustainable competitive edge, allowing it to purchase products in bulk and lower per-unit costs, which enables it to offer lower prices than local shops and national grocers [6] - The company's value proposition has been effective, especially during periods of high inflation, as consumers seek value for their purchases [8][10] - Walmart's innovation, particularly in online shopping and the Walmart+ subscription service, has contributed to its growth, with global e-commerce sales increasing by 27% in the fiscal third quarter [10] Financial Sector Insights - JPMorgan Chase is the closest public company to reaching a $1 trillion valuation, with a market cap of nearly $864 billion as of February 4 [13] - Visa, with a market cap of $636 billion, offers a faster growth rate and focuses solely on payment facilitation, avoiding the risks associated with lending [16][19] - Both JPMorgan Chase and Visa face cyclical risks inherent in the financial sector, which can impact their growth during economic slowdowns [19][20]

Core Insights - Visa has launched a new platform aimed at supporting small businesses by providing various tools and networking opportunities, particularly in anticipation of major sporting events this year [1] Company Initiatives - The new platform is designed to stimulate small businesses, indicating Visa's commitment to enhancing the growth and sustainability of this sector [1]

Core Insights - Vault Payment Solutions has selected Thredd to support new card programs on Mastercard's global network, aiming to launch prepaid, debit, and private-label card products in Australia and the UK [1][2] - Vault has achieved Mastercard Principal Issuing Partner status, enhancing its capabilities in rewards schemes, gift cards, and embedded finance [1] - The partnership will utilize Thredd's comprehensive issuing and processing stack, which includes services like tokenization, fraud monitoring, and digital wallet connectivity [2] Group 1 - The decision to partner with Thredd was influenced by its technical capabilities, global support model, flexibility, and local expertise in Australia and the UK [3] - Vault's CEO emphasized the importance of connecting directly to Mastercard and selecting a processing partner as a critical strategic move [3] - Thredd's leadership in program management and embedded payments aligns with its mission to enable innovative card propositions [4] Group 2 - Thredd is also working on the global rollout of Visa Cloud Connect, indicating its commitment to cloud-first infrastructure [4][5] - The initiative includes plans to connect to three Visa Cloud Connect endpoints worldwide, showcasing Thredd's global implementation strategy [5]

Group 1 - Visa announced a $100 million loan initiative aimed at supporting small businesses, along with additional services such as digital payment acceptance tools, expense management software, marketing support, and fraud mitigation services [3][7] - American Express introduced a flexible payment option for newly approved Business Platinum and Gold cardholders in the UK, allowing them to pay over time with interest [4][5][7] - Both Visa and American Express emphasized their commitment to supporting small businesses, with Visa's regional president highlighting the integration of Visa's products and expertise to provide flexible financing solutions [3][7] Group 2 - Visa's new services became available on Thursday morning, indicating a prompt rollout of their small business support initiatives [4] - The new pay-over-time feature from American Express does not specify the interest rate that will be charged, leaving some details unclear for potential users [5]

Investment Rating - The report maintains an "Outperform" rating for Visa with a target price of US$400.60, indicating a potential upside of 21.8% from the current price of US$328.93 [2][7]. Core Insights - In 1Q FY26, Visa's total revenue reached US$15.17 billion, a 14.0% year-over-year increase, slightly above expectations. Net revenue, after deducting client incentives, grew 14.6% year-over-year to US$10.90 billion, also exceeding forecasts [3][11]. - The growth in revenue was driven by strong performance in Commercial and Money Movement Solutions (CMS) and Value-Added Services (VAS), with CMS revenue increasing by 20% year-over-year and VAS revenue up 28% year-over-year [3][11]. - Visa's stablecoin strategy has evolved significantly, with the company expanding its stablecoin card issuance to over 50 countries and achieving an annualized settlement volume of approximately US$4.6 billion by the end of 2025 [5][12]. - Management remains optimistic about the company's outlook, maintaining full-year guidance unchanged, with projected net revenue growth of 11.3% for FY26, supported by resilient global payment trends and strong growth in CMS and VAS [7][16]. Financial Summary - For FY26, Visa expects net revenue of US$44.52 billion, with net profit projected at US$24.32 billion and diluted EPS at US$12.93, reflecting a growth rate of 12.7% [2][3]. - Operating expenses in 1Q FY26 rose by 16.2% year-over-year, influenced by unfavorable foreign exchange impacts and increased marketing expenses [3][11]. - The report highlights ongoing share repurchases totaling approximately US$3.8 billion and cash dividends of about US$1.3 billion, reinforcing Visa's commitment to shareholder returns [3][11].

Investment Rating - The report maintains an "Outperform" rating for Visa, with a target price raised to US$400.60, indicating a potential upside of 21.8% from the current price of US$328.93 [2][7]. Core Insights - In 1Q FY26, Visa's total revenue reached US$15.17 billion, a year-over-year increase of 14.0%, slightly above expectations. Net revenue, after deducting client incentives, grew 14.6% to US$10.90 billion, also exceeding forecasts [3][11]. - The growth in revenue was driven by strong performance in Commercial and Money Movement Solutions (CMS) and Value-Added Services (VAS), with CMS revenue increasing by 20% year-over-year and VAS revenue up 28% year-over-year [3][11]. - Visa's stablecoin strategy has evolved into an integrated capability stack, expanding its card issuance and settlement services to over 50 countries, with stablecoin settlement volume reaching an annualized US$4.6 billion by the end of 2025 [5][12]. - Management remains optimistic about the company's outlook, maintaining full-year guidance unchanged, with projected net revenue growth of 11.3% for FY26, supported by resilient global payment trends and strong growth in CMS and VAS [7][16]. Financial Summary - For FY26, Visa expects net revenue growth of 11.3%, with diluted EPS projected to grow from US$12.93 in FY26 to US$15.94 by FY28, reflecting a sustained low double-digit growth rate [3][7]. - Operating expenses in 1Q FY26 rose by 16.2% year-over-year, influenced by unfavorable foreign exchange impacts and increased marketing expenses [3][11]. - Visa's return on equity (ROE) is projected to remain high, at 59.5% for FY26, with a price-to-earnings (P/E) ratio of 25 for the same year [2][3].

Core Insights - Visa Inc. is enhancing its global money movement capabilities through a partnership with UnionPay International, aiming to expand Visa Direct's reach in the Chinese Mainland [1][8] - This collaboration allows clients to send cross-border remittances to over 95% of UnionPay International debit cardholders, significantly reducing friction for global senders [1][8] - The partnership aligns with Visa's strategy to transition from a card-centric revenue model to an infrastructure-driven approach for money movement, capitalizing on the growing significance of cross-border payments [2][3] Strategic Implications - The partnership complements Visa's international expansion strategy by embedding into an established network, reducing execution risk while monetizing flows through value-added services [3][4] - The expected rollout in the first half of 2026 could represent a significant shift in Visa's money movement strategy, enhancing its relevance in evolving real-time payout networks [4] Competitive Landscape - Competitors such as Mastercard and American Express are also expanding their cross-border payment capabilities, with Mastercard reporting a 12% increase in net revenues and 15% growth in cross-border volumes in 2025 [5] - American Express is focusing on global business payments and integrated corporate solutions, achieving a 7% year-over-year growth in network volumes in 2025 [6] Financial Performance - Visa's stock has declined by 5.9% over the past year, compared to an 18.2% decline in the industry [7] - The Zacks Consensus Estimate for Visa's fiscal 2026 earnings suggests an 11.8% increase from the previous year [9] - Visa's forward price-to-earnings ratio stands at 24.53, above the industry average of 19.62, indicating a Value Score of D [11]

Core Insights - Visa Inc. is a global payment technology company with a market cap of $599.2 billion, operating in over 200 countries and facilitating secure transactions through advanced technology [1] Financial Performance - Visa's stock has declined 4.9% over the past year, underperforming the S&P 500 Index, which has increased by 15.4%. Year-to-date, Visa is down 6.2%, while the S&P 500 has seen a 1.1% increase [2] - Despite this, Visa has outperformed the Amplify Digital Payments ETF, which has decreased by 23.7% over the past year and 10.9% year-to-date [3] - In fiscal Q1 2026, Visa reported net revenue of $10.9 billion, a 15% year-over-year increase, driven by strong consumer spending and higher payment volumes. Adjusted EPS was $3.17, also up 15% and exceeding analyst expectations [4] Future Projections - Analysts project Visa's EPS to grow by 11.9% year-over-year to $12.83 for fiscal 2026. The company has consistently surpassed consensus estimates in the last four quarters [5] - The consensus rating among 38 analysts is a "Strong Buy," with 29 "Strong Buy," four "Moderate Buy," and five "Hold" ratings [5] Analyst Ratings and Price Targets - RBC Capital Markets analyst Daniel Perlin has reiterated a "Buy" rating on Visa, setting a price target of $395. The mean price target of $402.17 indicates a 22.3% premium from current levels, while the highest target of $450 suggests an upside potential of 36.8% [7]