Atlanta, Georgia-based Corpay, Inc. (CPAY) operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments. With a market cap of $21.3 billion, Corpay’s operations span the Americas, Europe, and Asia-Pacific.
The payments major has underperformed the broader market over the past year. Over the past 52 weeks, CPAY gained 14.5%, lagging behind the S&P 500 Index’s ($SPX) 24.3 returns. In 2024, CPAY is up 10.1% compared to SPX’s 17.2% gains on a YTD basis.
Zooming in further, CPAY has lagged behind the ETFMG Prime Mobile Payments ETF’s (IPAY) 23.3% returns over the past 52 weeks and 11% gains on a YTD basis.
Shares of Corpay surged 5.9% after the release of its better-than-expected Q2 earnings on Aug. 7. The company reported a 2.9% annual revenue growth to $975.7 million, which exceeded Wall Street’s estimates. Its net income attributable to shareholders grew 5% to $251.6 million. Moreover, the company repurchased shares worth $947.1 million during the first half of 2024, demonstrating its commitment to shareholders.
For the current fiscal year, ending in December, analysts expect Corpay to report an EPS growth of 12.9% annually to $17.80. Moreover, the company's earnings surprise history is robust. It surpassed the consensus estimates in each of the past four quarters. Its EPS for the last reported quarter surpassed the consensus estimates by 1.4% to $4.26.
Among the 19 analysts covering the CPAY stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” five “Holds,” and one “Strong Sell.”
This configuration has been stable over the past months.
On Aug. 20, JP Morgan (JPM) analyst Tien-Tsin Huang maintained an “Overweight” rating with a price target of $353.
CPAY’s mean price target of $324.33 represents a premium of 4.3% from current price levels. The Street-high target of $376 indicates a potential upside of 20.9%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
