UPDATE: J.P. Morgan Upgrades Wright Express to Neutral, Raises PT
In a report published Friday, J.P. Morgan & Co. upgraded its rating on Wright Express (NYSE: WXS) from Underweight to Neutral, and raised its price target from $69.00 to $76.00.
J.P. Morgan noted, “Fleet cards provide significant savings and benefits to local fleets including purchase controls, lower fraud, and specialized reporting, but are only 50% penetrated due to limited awareness. We expect penetration to gradually increase as awareness builds and leading fleet card providers (like WXS) further leverage the distribution channels of major oil companies. Moreover, the Company has expressed an interest in doing more acquisitions and recently expanded their credit facility, which gives them additional liquidity. We are upgrading WXS to Neutral, as key upside risks to our previous Underweight rating (higher fuel prices and accretive acquisitions) have materialized.”
Wright Express closed on Thursday at $69.69.
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