BofA sees payments firms rebounding as fundamentals outshine AI anxiety
05/03/2026 12:57
** BofA Global Research reinstates coverage on Visa, Mastercard, Block, PayPal, Affirm and Klarna, saying the sector is mispriced as investors overreact to AI-driven disruption fears ** Calls the overall outlook constructive, citing steady payments volumes, rising digital commerce penetration and improving cross-border trends ** Visa and Mastercard flagged as the most defensive, high-quality opportunities, with valuations at their cheapest relative to the S&P 500 in years due to regulatory and AI concerns ** BofA argues AI concerns are overstated, viewing AI instead as an operational tailwind that should support margin expansion across payments and BNPL ** Macro backdrop seen as supportive, helped by steady U.S. spending and liquidity tailwinds such as higher tax refunds, adds brokerage
| Company | Rating | PO |
| Visa V.N | Buy | $410 |
| Mastercard MA.N | Buy | $700 |
| Block XYZ.N | Buy | $88 |
| PayPal PYPL.O | Neutral | $48 |
| Affirm AFRM.O | Buy | $82 |
| Klarna KLAR.N | Buy | $21 |
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