TSX gains after CPI shows US inflation rose 3%
Investing.com - BofA Securities upgraded WEX Inc. (NYSE:WEX) from Neutral to Buy on Wednesday, setting a price target of $178.00. According to InvestingPro data, WEX currently trades at a P/E of 19.6x with a market capitalization of $5.3 billion. The company’s strong gross margin of 72% reflects its operational efficiency.
The upgrade comes as BofA believes the payment solutions provider is "turning the corner on growth" after several challenging quarters, with an attractive valuation presenting a positive risk/reward profile. This view is supported by InvestingPro data showing three analysts recently revising their earnings estimates upward, while management has been actively buying back shares.
BofA expects WEX to report positive revenue growth for the first time in four quarters when the company releases its third-quarter results on October 29, 2025.
The anticipated revenue improvement is attributed to sales initiatives implemented during the first half of 2025, higher fuel prices, and easier year-over-year comparisons.
BofA maintained its $178 price target, noting that WEX shares are currently trading at 8.5 times the projected 2026 earnings per share.
In other recent news, Wex Inc. reported its financial results for the second quarter of 2025, revealing a mixed performance. The company achieved an adjusted earnings per share (EPS) of $3.95, representing a 1% increase compared to the previous year. However, revenue experienced a decline of 2.1%, totaling $659.6 million. Despite the revenue drop, the growth in EPS has caught the attention of market participants. Analysts from various firms are closely monitoring these developments. The company’s financial performance is a focal point for investors assessing its future prospects. These recent developments highlight the importance of both earnings and revenue figures for market analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.