Wells Fargo Initiates FLT At Market Perform, $31-$33 Valuation Range

Wells Fargo is initiating coverage of FleetCor Technologies, Inc. (NYSE: FLT) with a Market Perform rating and a $31-$33 valuation range.

“Our DCF-driven valuation range implies only modest upside potential, and we believe shares are fairly valued in the context of our 2011 and 2012 EPS estimates of $1.84 and $2.15, respectively,” Wells Fargo writes.

“Valuation aside, we hold a favorable view of FLT given the company's above average profitability, large international component (which drives an attractive secular growth profile) and favorable fuel exposure dynamics (limited downside on falling prices, unlimited upside potential to rising prices). We opportunistically look for more attractive valuations before becoming more positive on the name.”

FleetCor Technologies currently trades at $30.24.