UPDATE: Citigroup Raises Target to $36 on FleetCor

Citigroup reiterates its Neutral rating on FleetCor (NYSE: FLT) and raises its price target to $36 from $32 ahead of earnings that are expected to be above consensus given rally in fuel prices.

Citigroup notes, "We are raising our 4Q11 EPS estimate for FLT by $0.01 to $0.52 (vs. consensus of $0.50) to reflect higher gas prices, partially offset by FX headwinds in Europe. We are increasing our 2012 EPS estimate by $0.05 (or 2%) to $2.60 and are now $0.04 ahead of consensus. While macro and FX headwinds from Europe weigh slightly on our forecasts, we are comfortable that FLT can offset this through accretion from its recent UK and Mexico acquisitions."

FLT closed at $34.74 a share on Friday.