- Citi analyst Peter Christiansen expressed incremental bullishness on FleetCor Technologies, Inc (NYSE:FLT) and WEX Inc (NYSE:WEX), lifting estimates and target prices on both, given rising fuel prices and solid demand signs.
- As a reminder, the incremental flow-through on higher fuel was highly margin-accretive.
- Christiansen upgraded WEX from Neutral to Buy on higher fuel and increased potential for better-than-expected travel volumes.
- Both FLT and WEX remain at least 6-7 turns below their pre-pandemic multiples despite their strong rebounds towards “compounder” status.
- Given FLT’s and WEX’s more niche end-markets, respective competitive moats, and compounding capability, Christiansen was against labeling them as “legacy” FinTech players.
- Both names were likely to remain macro sensitive, though, at current levels, he saw rising investor interest beginning to gain traction, likely leading to multiple expansions ahead.
- Price Action: FLT shares traded lower by 1.50% at $237.82 on the last check Friday. WEX shares traded lower by 0.92% at $171.29.
