By Sam Boughedda

In a observe to traders on Thursday, Morgan Stanley analyst James Faucette mentioned that Visa’s (NYSE:) Could replace was encouraging, however recession considerations within the second half of the 12 months nonetheless weigh on the inventory.

The analyst mentioned sturdy journey demand and wholesome US spending proceed to carry up regardless of excessive inflation and rising recession fears.

“V’s card-present cross-border + card-not-present journey quantity excluding intra-Europe surpassed 2019 ranges for the primary time for the reason that begin of the pandemic, and reached 108% of 2019 stage in Could from 94% in April. This could serve to reassure the market that pent-up journey demand and loosening border restrictions ought to assist sturdy cross-border spending throughout the summer time months,” Faucette informed shoppers in a observe.

Visa’s cross-border quantity can be probably benefitting from rising airline fare costs and excessive inflation in key markets, he added, with the corporate highlighting sturdy recoveries within the inbound US and Asia-Pacific journey corridors over the past two months.

“Regardless of continued wholesome quantity tendencies, we acknowledge that uncertainty stays on the journey outlook given considerations round a possible recession in 2H.”

Elsewhere, Goldman Sachs analyst Will Nance mentioned Visa’s operational metrics for April and Could “must be supportive of shares and the bull thesis across the cross border restoration propelling close to time period outcomes. Particularly, our evaluation implies sturdy development in cross border revenues, implying important upside for the quarter.”