BUZZ-BofA sees payments firms rebounding as fundamentals outshine AI anxiety

Reuters03-05 20:57
BUZZ-BofA sees payments firms rebounding as fundamentals outshine AI anxiety

** BofA Global Research reinstates coverage on Visa, Mastercard, Block, PayPal, Affirm and Klarna, saying the sector is mispriced as investors overreact to AI-driven disruption fears

** Calls the overall outlook constructive, citing steady payments volumes, rising digital commerce penetration and improving cross-border trends

** Visa and Mastercard flagged as the most defensive, high-quality opportunities, with valuations at their cheapest relative to the S&P 500 in years due to regulatory and AI concerns

** BofA argues AI concerns are overstated, viewing AI instead as an operational tailwind that should support margin expansion across payments and BNPL

** Macro backdrop seen as supportive, helped by steady U.S. spending and liquidity tailwinds such as higher tax refunds, adds brokerage

Company

Rating

PO

Visa V.N

Buy

$410

Mastercard MA.N

Buy

$700

Block XYZ.N

Buy

$88

PayPal PYPL.O

Neutral

$48

Affirm AFRM.O

Buy

$82

Klarna KLAR.N

Buy

$21

(Reporting by Rashika Singh in Bengaluru)

((Rashika.Singh@thomsonreuters.com;))

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment