Compass Point Research & Trading Reiterates Neutral Rating, $50 PT on FleetCor Technologies

In a report published Wednesday, Compass Point Research & Trading reiterated its Neutral rating and $50.00 price target on FleetCor Technologies

. Compass Point noted, “3Q'12 results were very strong - record revenue, record profits, and expanded resource capacity for strategic transactions. Consequently, we decided to provide a review of the company's corporate history, corporate strategy, corporate leadership, growth track record, and deal book for investors taking a second look. In our opinion, while the fundamentals are strong, the acquisition intensive strategy presents risks. Weighing the risks with today's valuation, we reiterate our Neutral rating and $50 price target. Shares have appreciated +76% year to date and now trade at 18x our revised estimate of this year's EPS and 18x current enterprise value to our estimate of this year's free cash flow. Our EPS estimates have been revised to reflect yesterday's announcement that existing stakeholders are selling 4.5 million shares of which the company is repurchasing $200 million worth through a newly initiated repurchase authorization.” FleetCor Technologies closed on Tuesday at $52.70.