WEX Inc. Hold Rating: Balancing Financial Improvements with Competitive and Macroeconomic ChallengesWe sense renewed focus. We credit WEX's management for solid execution and an apparent return to financial consistency, which we see as critical for multiple expansion. Impactive Capital’s activism has played a part in driving recent share price appreciation, in our view. On the call, WEX discussed that it conducted a “rigorous” strategic portfolio review and concluded its current portfolio fits better under one umbrella. We think this reduces realization of our SOTP valuation. Delevering the balance sheet remains the top capital allocation focus, with leverage declining to 3.25x from 3.4x sequentially. We applaud this capital discipline. Mobility chugging along. Mobility organic revenue growth accelerated to 2.4% year-over-year, from 0.5% in the second quarter, though included a 1-2 point benefit from easier year-ago compares driven by a one-time event.