Of the 10 analysts covering PacWest, five have a Buy or Strong Buy rating and the other five rate the shares at Hold. At a price of around $11.30 a share, the upside potential to a median price target of $15.00 is 24.7%. At the high price target of $32.00, the upside potential is 183%.
Analysts expect PacWest to post first-quarter revenue of $311.72 million, down 12.4% sequentially and by 6.5% year over year. Adjusted EPS are forecast at $0.57, down 33.8% sequentially and by 53.5% year over year. For the full 2023 fiscal year, the bank is expected to report revenue of $1.15 billion, down 18.9%, and EPS of $1.88, down 52.8%.
PacWest stock trades at 6.0 times expected 2023 EPS and 5.1 times estimated 2024 earnings of $2.20 per share. The stock’s 52-week range is $5.00 to $35.87. The bank pays an annual dividend of $1.00 (yield of 8.86%). Total shareholder return for the past year was negative 91.45%.
Visa
The second Dow component reporting after markets close Tuesday is credit card issuer Visa Inc. (NYSE: V). Over the past 12 months, the stock price has risen by 8.1%, including a boost of 12.65% so far in 2023. Visa has been a favorite of Warren Buffett’s since he first acquired the stock in 2011. Since then, the shares have put up a price increase of more than 10 times. High interest rates and rising consumer credit card debt both work to Visa’s advantage. Free cash flow for the past 12 months totaled $17.74 billion, and Visa has repurchased $10.72 billion in stock over the same period.
Analysts are solidly bullish on the stock, with 30 of 35 brokerages rating it at Buy or Strong Buy. Another four have Hold ratings, and one has a Sell rating. At a share price of around $234.70, the implied gain based on a median price target of $265.00 is about 12.9%. At the high price target of $294.00, the upside potential is 25.3%.
For Visa’s second quarter of fiscal 2023, revenue is forecast at $7.79 billion, down 1.9% sequentially but up 8.3% year over year. Adjusted EPS are forecast at $1.99, down 8.9% sequentially and 11.2% higher year over year. For the full 2023 fiscal year ending in September, consensus estimates call for EPS of $8.49, up 13.2%, on revenue of $32.36 billion, up 10.4%.
Visa stock trades at 27.7 times expected 2023 EPS, 24.2 times estimated 2024 earnings of $9.69 and 21.0 times estimated 2025 earnings of $11.16 per share. The stock’s 52-week range is $174.60 to $235.57. Visa pays an annual dividend of $1.80 (yield of 0.77%). Total shareholder return for the past 12 months was 9.38%.
Originally published at 24/7 Wall St.
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