Citi ups Corpay target, places on ‘positive catalyst watch’

Citi raised the firm’s price target on Corpay (CPAY) to $405 from $355 and keeps a Buy rating on the shares. The analyst placed the shares on a “30-day positive catalyst watch.” Recent natural disasters on the Florida panhandle potentially offer upside to the portion of Corpay’s lodging business that serves FEMA, while the company’s corporate payments business has benefitted in past cycles from U.S. general election advertising spending, the analyst tells investors in a research note. The firm says this in conjunction with potential sub-segment assets sales and the pending closing of Corpay’s acquisition of GPS Capital Markets, which present potential upward revision risk to Corpay’s intermediate growth and margin trajectory.