Analyst Rufus Hone of BMO Capital maintained a Buy rating on Corpay Inc (CPAY – Research Report), retaining the price target of $410.00.
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Rufus Hone has given his Buy rating due to a combination of factors related to Corpay Inc’s strategic positioning and potential acquisition plans. The proposed acquisition of Alpha Group is seen as a significant opportunity for CPAY, as it could enhance their cross-border payments business and align with their strategy to expand within the financial institutions sector. This acquisition is expected to be well-received by investors, potentially leading to an increase in adjusted EPS and accelerating CPAY’s organic revenue growth.
Additionally, the acquisition could provide CPAY with increased scale and strengthen its financial institutions vertical, which is a key area of focus for the company. The revenue mix post-acquisition would shift favorably, with a significant portion attributed to corporate payments. Furthermore, the financial implications suggest potential EPS accretion, even though initial adjustments might be modest. Overall, CPAY’s strong position in the B2B payment sector, combined with the strategic benefits of the Alpha acquisition, supports the Buy recommendation.
According to TipRanks, Hone is a 4-star analyst with an average return of 10.8% and a 69.53% success rate. Hone covers the Financial sector, focusing on stocks such as PayPal Holdings, Mastercard, and Visa.
In another report released on May 27, Jefferies also maintained a Buy rating on the stock with a $375.00 price target.