Mihir Bhatia, an analyst from Bank of America Securities, reiterated the Buy rating on WEX. The associated price target is $180.00.
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Mihir Bhatia has given his Buy rating due to a combination of factors that, in his view, create an attractive risk‑reward profile for WEX. He highlights that the company delivered a strong fourth quarter, posting adjusted EPS meaningfully ahead of both his and the Street’s expectations, supported by favorable fuel pricing, healthy expansion in the Benefits segment, and a quicker‑than‑expected rebound in Corporate Payments. Although management’s 2026 guidance came in slightly below consensus, much of this shortfall is tied to more conservative fuel price assumptions rather than a deterioration in the core business, and the company still targets mid‑single‑digit to high‑single‑digit growth in its key Benefits and Corporate Payments franchises.
At the same time, Bhatia notes that Mobility growth will be modest and back‑half weighted, and that flat operating margins reflect a balance between cost savings, ongoing investments, and the drag from lower fuel prices, indicating there is still operational work ahead. Even after trimming his forward EPS estimates and slightly reducing his price objective to $180, he believes the current valuation—at under 8.5x the midpoint of 2026 earnings guidance—does not reflect rapid growth expectations and therefore understates the company’s earnings power. On this basis, he views the shares as undervalued relative to WEX’s long‑term fundamentals and earnings trajectory, supporting the decision to reiterate a Buy rating.
Bhatia covers the Financial sector, focusing on stocks such as American Express, Visa, and Capital One Financial. According to TipRanks, Bhatia has an average return of 9.7% and a 68.01% success rate on recommended stocks.
In another report released today, Mizuho Securities also maintained a Buy rating on the stock with a $170.00 price target.