The analyst rates Visa's stock as "overweight" as he believes "stronger cyclical growth and Visa Europe cost/revenue synergies both lessen downside risks to estimates and could drive further upside and valuation multiple expansion". He also notes that Visa still sees many secular global growth opportunities for the "electronification" of payments, including China and India.
But we still think that for the really good companies there is an upside in valuations.
But we still think that for the really good companies with long-term franchises there is an upside in valuations.
It said: Although consortium bids may be tricky to orchestrate in the current environment, we think that the valuation upside on offer makes the argument more persuasive.
We want to stress that we continue to believe in the medium-term growth story for Whitbread and a steady UK macro environment would still see considerable upside to the valuation.
But Wood Group lost 25.5p to 652p as Deutsche reduced its recommendation, saying: Although we see the recent sell-off as overdone, with limited earnings growth potential in 2014-15 and lower valuation upside versus peers we downgrade to hold [from buy].
We are continuously kicking ourselves for not embracing the seemingly limited valuation upside in the shares in light of the group's dependable earnings stream and an attractive dividend policy (dividend per share growth is at least in line with RPI for the foreseeable future).
Based on poor technicals and declining fundamentals, we believe Harley shares do not have a lot of upside from current valuation.
Even if BlackBerry is able to make a big dent in this market going forward, its unlikely to mean much for its earnings or valuation upside.
Amgen closed its $2 billion acquisition of Abgenix on April 3. Cowen and Co. maintained an "outperform" rating on the stock on April 7. "Supported by strong cash flows, the potential for earnings-per-share upside, a reasonable valuation and an improving pipeline, Amgen remains our top large-cap biotechnology pick," Cowen said.
THE THROUGH-THE-LOOKING-GLASS AWARD To fledgling Internet companies at the center of an investing mania unlike any other, one that convinced investors to turn traditional stock valuation methods upside down.
