Wex downgraded to Market Perform from Outperform at William Blair (yesterday)

William Blair analyst Andrew Jeffrey yesterday afternooon downgraded Wex (WEX) to Market Perform from Outperform. The firm would like to see management restructure Wex as it thinks the sum-of-the-parts offers the best path to shareholder value creation. The company’s markets have evolved such that it no longer possesses a competitive advantage in its non-mobility segments, which were more than 45% of 2024 revenue, the analyst tells investors in a research note. Instead of restructuring, management is choosing to increase investment against its corporate payments and benefits offerings, which Blair views as a “misallocation of capital.”