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Investing.com - Jefferies lowered its price target on Corpay (NYSE:CPAY) to $300.00 from $340.00 on Monday, while maintaining a Buy rating on the stock. The new target still represents significant upside from the current price of $260.35, with InvestingPro data showing the stock trading near its 52-week low of $252.84, having fallen 8.4% in the past week alone.
The firm updated its model to account for Corpay’s Alpha acquisition, which it expects to be slightly dilutive to Corpay’s organic growth in the fourth quarter of 2025.
Jefferies noted that Alpha is growing at approximately 11% year-over-year as it absorbs float headwinds, but anticipates revenue synergies should offset lower float income in fiscal year 2026. This acquisition comes as Corpay’s own revenue grew 9.22% over the last twelve months.
The firm observed that recent performance indicators from WEX were satisfactory, though it expressed minor concern about slightly softer same-store sales in Corpay’s direct channel.
Jefferies still sees potential for a more conservative starting point for fiscal year 2026 organic growth, but believes that when combined with Alpha acquisition synergies, this could position Corpay for a return to beating estimates and raising guidance in fiscal year 2026. Investors watching this stock should note that Corpay reports earnings in just two days on November 5, according to InvestingPro, which offers additional insights through its comprehensive Pro Research Report.
In other recent news, Corpay, Inc. has completed a significant transaction, acquiring a 34% stake in AvidXchange for approximately $550 million, with an option for full ownership. AvidXchange, known for its accounts payable automation and payment solutions, reported an annual revenue of $450 million. In a strategic move, Corpay has also partnered with NCR Voyix Corporation to enable fleet card payments at over 18,000 fuel stations across the United States, integrating Corpay’s Comdata system with NCR’s payment gateway. Additionally, Corpay has joined the UK’s Faster Payment Service, enhancing its ability to process near-instant GBP transactions for its clients in the UK market. The company has reaffirmed its financial guidance for the third quarter and full year 2025, as initially disclosed in an SEC filing. Analyst firm Raymond James has lowered Corpay’s stock price target to $392, citing slight underperformance in organic growth despite in-line second-quarter revenue and earnings per share. These developments reflect Corpay’s ongoing efforts to expand its market presence and enhance its service offerings.
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