UBS analyst Eric Wasserstrom sees American Express (AXP) as his top pick among the Payment Networks, rating the company with a Buy and a $115 price target. The analyst is positive on the broader industry, saying his proprietary data suggests a robust growth trend, with the total addressable market for electronic payments estimated around $95T. Wasserstrom notes that the UBS survey of small and midsized merchants across 4 geographies suggests that 94% of respondents intend to add support to accept electronic payments. More specifically, he expects American Express to show "accelerating discount volumes and loan growth", supporting EPS growth and a high-level stability of profitability. Based on the differentiated view among analysts for American Express earnings, the analyst sees the company as a "beat and raise story". As part of his broader research note, as reported earlier, Wasserstrom has also assumed PayPay (PYPL) at Buy with a $90 price target, Visa (V) at Neutral with a $141 price target, and initiated MasterCard (MA) at Neutral with a $205 price target. He expects PayPal to benefit from "sustained volume growth" driven by engagement of its core constituencies and demand for its processor/gateway services from merchants. For Visa and MasterCard, the analyst sees sustained secular trends of growth in personal consumption expenditures and increasing adoption of electronic payments to drive annual revenue growth rates of up to 11% beyond FY18.

Bernstein analyst Harshita Rawat raised the firm's price target on Visa to $310 from $304 and keeps an Outperform rating on the shares. The firm notes Visa delivered a strong Q2 and intact 2024 guidance. Going into the quarter, there were growing concerns regarding negative revisions due to multi-year low FX volatility and somewhat high volumes baked into the guide. The beat in the quarter and management commentary regarding the second half of the year may lead to consensus numbers going up modestly, Bernstein adds.

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DMG Blockchain Solutions (DMGGF) announced a strategic collaboration with PayPal (PYPL) and Energy Web to explore ways to decarbonize the Bitcoin blockchain. The companies are working together on developing methods for transacting on the Bitcoin network which would expand its use as a carbon neutral payment rail, thus advancing its application. DMG, Energy Web, and PayPal are working together to publish a research paper, which we collectively believe will benefit users of the Bitcoin network who would like to take advantage of carbon neutral options in their transactions. PayPal, with its focus on developing its bitcoin payment rail, has been a leader in new payment technologies with the introduction of its enhanced services by integrating blockchain technology, launching the PayPal USD stablecoin with Paxos Trust Company in August 2023 for efficient transactions.

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Wedbush analyst Moshe Katri raised the firm's price target on Visa to $300 from $280 and keeps an Outperform rating on the shares. The firm notes Visa reported stronger than expected Q2/FY24 results, while reiterating FY24 guidance.

Wells Fargo raised the firm's price target on American Express to $265 from $250 and keeps an Overweight rating on the shares. The firm sees a good case for management to express greater confidence in or lean to the upper end of the EPS or revenue guide for 2024. With the macro haze fading, Wells believes investors will come away with a greater appreciation of the competitive position and moat.

Citi raised the firm's price target on Visa to $321 from $314 and keeps a Buy rating on the shares. the company's March quarter results featured a top- and bottom-line beat and while the reiterated fiscal 2024 outlook implies lower second half of the year revenues, a modest step-up in growth remains embedded and the low double-digit exit rate bodes well for fiscal 2025, the analyst tells investors in a research note. The firm says the clarity on Visa's revenue trajectory and breadth of opportunity should support the multiple.