Wolfe upgraded Corpay (NYSE:CPAY) to Peer Perform from Underperform, and said it believes the company’s long-term growth story remains intact.
Wolfe said the growth story is aided by adequate capital and opportunities to reinvest back into the corporate payments segment, higher than industry average margins, and a strong foothold in B2B payments which will focus on selling more full-AP solutions.
The analysts added, that the recent investment in the corporate payments unit and lodging, continues to diversify the firm’s revenue streams.
“Overall, Wolfe is constructive on the strategic direction CPAY is taking ((particularly within Corporate Payments)), and look for evidence of success through organic revenue trends over the next few quarters,” the analysts said.
CPAY had beaten its second quarter earnings per share estimates.
SA quant rates the company at Hold, while SA analysts rate it at Buy.
The shares were up 15.5% on a one-year basis.
