Robert W. Baird analyst David Koning maintained a Buy rating on WEX (WEX – Research Report) on March 14 and set a price target of $186.00.
David Koning has given his Buy rating due to a combination of factors that suggest strong future performance for WEX. The company is currently trading at an attractive valuation of 10 times the estimated earnings for 2025, and there is an expectation that the stock’s multiple will increase as WEX successfully meets its long-term targets. These targets include a revenue growth of 5-10% annually and an earnings per share (EPS) growth of 10-15% per year.
Additionally, WEX has announced a significant stock buyback, reflecting management’s confidence in the company’s strategic plan. This buyback is expected to enhance EPS by approximately $0.80 to $1.00 annually, further boosting the stock’s appeal. The company’s diverse operations across fleet, travel, and healthcare payments, along with stable macroeconomic conditions, support a positive outlook, making the stock a compelling buy.
In another report released on March 3, KBW also maintained a Buy rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WEX in relation to earlier this year.