Visa Could See European Business Slide As Region Recovers and 2 Other Dow Movers to Watch
Visa Inc. (NYSE:V): Current price $199.60
A 3 percent appreciation by the euro in 2013 and the nascent economic recovery in Europe could propel MasterCard Inc. (NYSE:MA) to further outpace its larger competitor, Visa. Analyst Jason Kupferberg at Jefferies Group LLC believes that MasterCard, which stock has outstripped Visa’s this year, could gain another 15 percent in two years, while the sovereign-debt crisis calms down. Also, Europe can drive MasterCard’s purchase volume, transactions and revenue for a minimum of the next two quarters, says analyst Greg Smith at Sterne Agee & Leach Inc. Presently, MasterCard does more business on the Continent than Visa does, which generates some 2 percent of its revenue there.