UPDATE: Citigroup Upgrades WEX to Buy, Raises PT on Growing Confidence in Accelerated Growth Profile

In a report published Thursday, Citigroup analyst Philip Stiller upgraded the rating on WEX WEX from Neutral to Buy, and raised the price target from $97.00 to $109.00. In the report, Citigroup noted, “After a recent series of meetings with WEX's CFO (Steve Elder) in Boston, our confidence in the company's ability to hit its new 15-20% EPS growth goals has increased and we are raising our forecasts and upgrading the stock to Buy (from Neutral). We believe WEX will accelerate its growth through a combination of higher organic growth, a much improved margin trajectory and accretion from future M&A. Our higher growth expectations increase our forecasts ahead of guidance / consensus and support at least the current in-line valuation multiple vs. the broader payments group. We look for WEX to execute well on its organic and M&A growth plans in the coming years and are raising our price target to $109, suggesting ~17% upside potential. Buy WEX.” WEX closed on Wednesday at $93.40.