In a rare move, Mizuho Securities on Friday downgraded Visa, the largest credit card network in the U.S., to a “neutral” rating from a “buy” rating, saying the company’s “single most important driver of revenue growth” was stalling.
Mizuho Analyst Dan Dolev said the slower rate at which consumers will be migrating from cash to credit and debit cards in the future will eat into Visa’s growth potential. So many have already made the shift, especially during the COVID-19 pandemic, that there is less opportunity ahead, he predicted in the note.
