Analyst Rufus Hone from BMO Capital reiterated a Buy rating on Corpay Inc (CPAY – Research Report) and keeping the price target at $380.00.
Rufus Hone has given his Buy rating due to a combination of factors that highlight Corpay Inc’s strong growth potential and strategic positioning in the market. The stock is currently trading at an attractive valuation, with a price-to-earnings ratio of approximately 12.5 times the estimated earnings for 2026, which is appealing given the company’s high-teens earnings per share growth potential. The Corporate Payments segment, a significant revenue driver, has shown strong sales momentum and high revenue retention rates, with opportunities for further growth.
Despite some expected macroeconomic headwinds, Rufus Hone anticipates that Corpay Inc will maintain its guidance for earnings per share and organic revenue growth for fiscal year 2025. The company’s strategic focus on share buybacks is seen as a positive lever to enhance shareholder value. Additionally, the depreciation of the U.S. dollar is expected to provide a favorable foreign exchange tailwind, benefiting Corpay Inc’s international revenue. Overall, Corpay Inc is well-positioned to capitalize on broader B2B payment trends and is recommended as a core mid-cap holding within the FinTech sector.
In another report released on April 16, Jefferies also maintained a Buy rating on the stock with a $370.00 price target.
CPAY’s price has also changed moderately for the past six months – from $348.970 to $307.770, which is a -11.81% drop .