UBS lowers Corpay stock price target to $315 on acquisition outlook

Investing.com - UBS lowered its price target on Corpay (NYSE:CPAY) to $315.00 from $340.00 on Thursday, while maintaining a Neutral rating on the payment solutions provider. Notably, UBS’s new target aligns closely with InvestingPro’s Fair Value assessment, though the stock currently trades significantly below this level at $261.69, near its 52-week low of $252.84.

The firm cited Corpay’s preliminary fiscal year 2026 organic revenue growth outlook of approximately 9-11%, which UBS views as a sign of consistency in the company’s overall portfolio performance, underpinned by stable-to-improving trends versus the second half of 2025 across all three business segments. This projection aligns with the company’s historical performance, as Corpay has maintained a 5-year revenue CAGR of 8% with a more robust 12% growth forecast for FY2025.

UBS noted that Corpay’s recently completed acquisitions of Alpha Group and AvidXchange are expected to contribute at least $0.75 of accretion to adjusted earnings per share, while the company slightly raised its underlying 2025 outlook following a modest third-quarter performance that exceeded analyst expectations. InvestingPro data shows that six analysts have revised their earnings upwards for the upcoming period, with FY2025 EPS now forecast at $21.33, up from the last twelve months’ diluted EPS of $14.72.

Corpay increased its fiscal year 2025 revenue guidance by $70 million to $4.505-4.525 billion, primarily due to a $55 million expected contribution from Alpha Group, which was acquired on October 31, along with the company’s $7 million third-quarter beat versus the midpoint of previous guidance. The company generated $4.17 billion in revenue over the last twelve months, with an impressive EBITDA of $2.2 billion and gross profit margins of 78.12%.

The company continues to market two previously mentioned divestiture candidates that could generate up to $1.5 billion, with potential outcomes expected within approximately 90 days, and management has indicated a strong desire to direct potential proceeds toward share repurchases at current price levels. Despite a 25% one-year price decline, Corpay maintains a "GOOD" overall financial health score according to InvestingPro, which offers comprehensive analysis through its Pro Research Report—one of 1,400+ detailed company assessments available to subscribers seeking actionable investment intelligence.

In other recent news, Corpay Inc reported strong financial results for the third quarter of 2025. The company exceeded expectations with an adjusted earnings per share (EPS) of $5.70, surpassing the consensus estimate of $5.63. Revenue also outperformed forecasts, reaching $1.172 billion compared to the anticipated $1.16 billion. These results represent a 1.24% positive surprise in earnings. The company’s performance reflects a robust quarter, with both earnings and revenue figures beating analyst projections. This development is likely to be of interest to investors monitoring Corpay’s financial health.

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