Corpay: Resilient Double-Digit Growth, Fading Stablecoin Overhang, and Undervalued Cash EPS Drive Upgraded $390 Target

Corpay Inc, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Michael Infante from Morgan Stanley reiterated a Buy rating on the stock and has a $390.00 price target.

Michael Infante has given his Buy rating due to a combination of factors tied to Corpay’s growth profile, competitive positioning, and valuation. He sees the company delivering resilient double-digit organic revenue gains even against increasingly difficult comparisons, with both Vehicle Payments and Corporate Payments sustaining healthy growth. Same-store sales trends are showing clear improvement, including a return to positive same-store sales in U.S. Vehicle Payments after six quarters of softness, which he interprets as an early sign of a broader recovery in freight and trucking activity. At the same time, management’s outlook for 2026 points to more than 20% year-over-year growth in cash EPS, underpinned by ongoing cost efficiencies and synergy realization.

Michael Infante’s rating is based on his view that the perceived disruption from stablecoins is not materializing into meaningful customer adoption or a structural cost advantage, reducing a key overhang on the stock. He also highlights strong execution in 2025, with nearly 30% sales growth that provides solid momentum and visibility into 2026 performance. Supportive macro factors, including favorable foreign exchange dynamics and lower benchmark interest rates, further reinforce the earnings trajectory. Given this backdrop, he judges the current valuation—around 11x his revised 2027 cash EPS estimate—as too low for a business with durable mid-teens to high-teens cash EPS growth, and he raises his price target to $390 while reiterating a positive stance on the shares.

Infante covers the Technology sector, focusing on stocks such as Clearwater Analytics Holdings, Corpay Inc, and nCino. According to TipRanks, Infante has an average return of 11.8% and a 77.78% success rate on recommended stocks.