Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, November 6, 2015

Article Excerpt

VISA INC., $78.75, New York symbol V, set up its European operations (Visa Europe) as an independent firm in 2008. Over 3,700 European banks own this business, which uses Visa’s brand and payment networks under a licensing deal. This week, Visa agreed to buy Visa Europe. Under the deal, it will pay 11.5 billion euros in cash (1 euro = $1.07 U.S.) plus stock worth 5 billion euros. Depending on Visa Europe’s future results, Visa may have to pay an additional 4.7 billion euros at the end of four years. Visa’s balance sheet is strong, so it can comfortably afford this purchase. As of September 30, 2015, it held cash of $3.5 billion and was debt-free. The company expects to close the deal in mid-2016. Combining the two operations will let Visa cut $200 million from its annual costs by the end of its 2020 fiscal year, which ends September 30, 2020. Meanwhile, the company earned $6.4 billion in fiscal 2015, up 12.5% from…