Visa Inc. (NYSE: V) saw its stock rise in premarket trading on Tuesday after the company announced a key regulatory breakthrough regarding its operations in China. The company revealed that the People’s Bank of China has approved its application to begin preparations for a domestic bankcard clearing institution. This approval is described as a significant step toward entering China’s domestic payments market, though Visa noted that additional regulatory requirements must be met before operations can officially launch.
CEO Ryan McInerney emphasized that this decision builds on Visa’s more than 40-year presence in the country. The company stated that it will continue collaborating with regulators to finalize the approval process and commence domestic bankcard clearing operations.
In addition to the China news, Visa is scheduled to report fiscal fourth-quarter results on Oct. 27. Analysts currently project earnings of $3.43 per share, a significant increase from the $2.98 per share reported in the same period a year ago. Revenue is expected to rise to $12.07 billion from $10.72 billion in the prior year.
Regarding the stock's technical performance, Visa shares rose 1.47% to $395 in Tuesday’s premarket trading. The stock is trading above its major moving averages, including the 20-day simple moving average of $369.47 and the 200-day simple moving average of $338.33. However, the 20-day average remains below the 50-day average, and the $365.50 level is noted as a key support area.
On the analyst front, the stock carries a Buy consensus rating with an average price forecast of $425.60. Several firms have recently adjusted their forecasts, including Baird, which raised its target to $430, and RBC Capital Markets and Wolfe Research, which raised their forecasts to $466 and $460, respectively.
