UPDATE: Morgan Stanley Initiates Coverage on WEX with Equal-Weight Rating, $107 PT on Long-Term Upside

In a report published Wednesday, Morgan Stanley analyst Smittipon Srethapramote initiated coverage on

with an Equal-Weight rating and $107.00 price target. In the report, Morgan Stanley noted, “Initiating coverage of WEX at Equal-weight. WEX is a leading provider of fleet cards and has demonstrated success in other higher-growth verticals as well; it has partnered with online travel agents, insurance companies, and healthcare companies, driving 25% YoY rev growth in Other Payments in 2013 and 15% YoY rev growth in total. We see international opportunities in fleet and continued 20%+ growth in Other Payments driving a solid 10% rev CAGR through 2016. Yet the stock price has re-rated to 19x 2015e EPS, and though we like fundamentals we see only 2% upside to our PT at current levels.” WEX closed on Tuesday at $105.26.