Investors' attentions are often focused on Fed actions, missing the larger picture.
The wide-moat bank's modest decline in growth will reverse as media attention falls, Wells Fargo resumes normal marketing efforts, and new sales incentive programs are put into place.
Undervalued Citigroup, Wells Fargo, BlackRock and T. Rowe Price present opportunity today.
Although service revenue expanded by 16% during the year, the no-moat point-of-sale hardware manufacturer faces headwinds.
We still expect the federal-funds rate to reach just 2.25% by 2020.
We maintain our fair value estimate of $104 for wide-moat Visa.
We think the company still has work to do in adapting its strategy for a changing payment environment.
We view the bank as undervalued as cost-cutting efforts continue to pay off.
Despite scandal and departure of CEO, we are maintaining our fair value estimate and the bank's wide-moat rating.
The company's third-quarter return on tangible common equity is in line with our long-term expectations, and our fair value estimate stands.