1 Wall Street analyst thinks Visa shares will rise to $320. Is it worth buying around $276?

According to at least one Wall Street analyst, investors are overly concerned about the upcoming cut in credit card interchange rates, and TD Cowen's Bryan Bergin recently kicked off a review of theVisa (NYSE: V)The company has a Buy rating and a $320 price target.

The market leader's goal of caring for a person

Bergin's price target implies an increase of about 16% from its previous price over the next 12 months, which is higher than most of its peers. Considering the recent growth rate of the world's largest payment network, this isn't an unreasonable stock price appreciation expectation.

The recent agreement to reduce U.S. credit card interchange fees for at least five years could sting the market. Fortunately, the rapid growth in international transaction volumes will be enough to overcome this negative factor and continue to deliver steady, high-single-digit percentage earnings growth through 2030.

In the first quarter of fiscal 2024 ended December 31, 2023, Visa reported a year-over-year increase in cross-border transaction volume of 161 TP3T, which helped drive year-over-year adjusted earnings growth of 81 TP3T, and stock purchases contributed to a year-over-year increase in first-quarter earnings per share of 111 TP3T.

Good stock to buy and hold

Over the past decade, Visa's EPS has grown by 298%, with international markets and cross-border transactions providing Visa with room for growth. The stock trades at just 27.8 times expected earnings. This price is not unreasonable as the stock is likely to continue to grow its earnings by a high single-digit percentage over the long term.

As the largest of only four card-based payment networks in the world, investors can reasonably expect Visa's earnings to continue to grow for at least the next decade.

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It pays to listen to our team of analysts when they have stock investment advice. After all, they've been running a newsletter for 20 years calledMotley Fool Stock AdvisorIt has more than tripled the market.

They have just announced what they think investors are currently doing.-est (superlative suffix)Worth buying10Only ......Visa made the list, but there are nine other stocks you may have overlooked.

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Cory Renauer has no position in any of the stocks mentioned above.The Motley Fool holds a recommended Visa.The Motley Fool has a disclosure policy.

1 Wall Street analyst sees Visa shares rising to $320. Buying around $276? This post was originally published by The Motley Fool.