UPDATE: JP Morgan Downgrades Wright Express to Underweight on Limited Upside to Shares

JP Morgan reduced its rating on Wright Express

from Neutral to Underweight but increased its price target from $63 to $69. JP Morgan noted, "We are reducing our rating on WXS from Neutral to Underweight as we see limited share price appreciation and EPS upside over the mid-term given tough fuel price and credit loss compares (FY12 near historic lows), soft underlying macro trends, headwinds created by the Visa/MasterCard interchange litigation settlement ($0.15 drag potential in FY13), and high expectations for the PaySpan partnership. Primary risks to our Underweight rating are a sharp rise in gas prices and/or the company completing a materially accretive acquisition or rapid penetration of PaySpan's market. We would be more constructive on a pull-back." Wright Express closed at $63.97 on Friday.