Analysts believe that Booking Holdings, with its diverse portfolio of online travel services, is well-positioned to benefit from the recovery of the travel industry post-pandemic. As people resume travel and tourism activities, Booking Holdings is expected to see an increase in bookings and revenue. Similarly, Visa, being a key player in the payments industry, is likely to continue its growth trajectory as digital payments become more prevalent worldwide.
Overall, Wall Street analysts are optimistic about the future prospects of Booking Holdings and Visa, considering their strong market positions and growth potential. Investors looking for promising stocks in the travel and payments sectors may find these companies worth considering for their portfolios.
Visa Expects Significant Growth in VAS Business
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Visa's Chief Financial Officer, John Hone, highlighted the company's optimistic outlook for its Value-Added Services (VAS) business. Hone emphasized that Visa foresees substantial revenue growth ranging from 9% to 12% in the long term.
Shift Towards Commercial & Money Movement Solutions
In line with its strategic vision, Visa anticipates a continual transition in its revenue composition towards the burgeoning Commercial & Money Movement Solutions (CMS) and VAS sectors. This shift is projected to counterbalance the anticipated deceleration in Consumer Payments growth.
Revenue Contribution Projections
Visa aims for CMS and VAS segments to surpass 50% of its total revenue in the foreseeable future, a significant increase from the approximately one-third contribution reported in FY24.
