Visa Inc. (NYSE:V) ranks among the best most active blue chip stocks to buy now. On December 24, Baird reiterated its Outperform rating on Visa Inc. (NYSE:V) with a $425 price target based on the company’s announcement of a $500 million financing for its litigation escrow account, which will result in revisions to the rate of conversion of its class B-1 and B-2 common stock into class A common stock.
According to Baird’s analysis of the arrangement, the litigation escrow funding establishes a pool for bank-covered litigation while also reducing bank stakes in Visa Inc. (NYSE:V) by cutting share conversion rates.
Baird maintained optimism around Visa Inc. (NYSE:V), dubbing it a “high-quality compounder” that is trading at its 2022-2025 relative low next-twelve-months PE ratio versus the S&P 500.
Additionally, Visa Inc. (NYSE:V) has widened its USDC stablecoin settlement capabilities to US financial firms, allowing selected banking partners to settle payments with Circle’s digital dollar stablecoin.
Visa Inc. (NYSE:V) is a digital payments technology company that operates a global payment network, connecting consumers, merchants, and financial institutions to facilitate electronic transactions.
While we acknowledge the potential of V as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.
Disclosure: None. This article is originally published at Insider Monkey.
