Wex initiated with a Perform at Oppenheimer

Oppenheimer initiated coverage of Wex (WEX) with a Perform rating. The firm believes Wex’s strong market position in fuel cards, corporate payments and benefits administration position the company well to capture strong secular growth trends in its end markets. Wex holds competitive advantages through Wex Bank, its closed-loop payment network, and its ability to serve nearly 60% of the Fortune 1000 through its Benefits segment. The company’s diversified end-market exposure also provides some insulation to any potential sector-specific weakness, Oppenheimer argues. However, its customers remain susceptible to an economic downturn, creating uncertainty around the timing of Wex’s return to its medium-term organic top-line growth target of 5%-10%, the firm adds.