Bank of America Securities analyst Mihir Bhatia has reiterated their bullish stance on CPAY stock, giving a Buy rating yesterday.
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Mihir Bhatia’s rating is based on a combination of several factors. Despite Corpay Inc’s shares trading lower due to a 2025 earnings outlook that fell short of expectations, Bhatia sees this as an opportunity for investors. The company’s fundamentals are strong, with organic revenue growth accelerating to 12% and customer retention remaining high at over 92%. Moreover, same-store sales have shown positive growth for the first time since early 2023, indicating solid momentum in the core business.
Bhatia acknowledges the negative impact of FX headwinds and fuel prices, which contributed to the lowered earnings guidance for 2025. However, he notes that these are largely macroeconomic issues beyond the company’s control. The positive developments, such as the bright spot in corporate payments and the potential for growth not yet factored into guidance, including acquisitions and stock buybacks, support his Buy rating. Overall, Bhatia believes that Corpay Inc is executing well and presents a particularly attractive buying opportunity at current levels.
Bhatia covers the Financial sector, focusing on stocks such as Synchrony Financial, American Express, and Bread Financial Holdings. According to TipRanks, Bhatia has an average return of 10.3% and a 68.51% success rate on recommended stocks.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $375.00 price target.