Headquartered in Atlanta, Corpay, Inc. (CPAY) is a leading provider of corporate payment solutions dedicated to simplifying and streamlining financial transactions for businesses worldwide. With a market cap of $25.2 billion, Corpay offers integrated payment automation, cross-border payments, and expense management solutions that empower organizations to optimize cash flow and enhance financial efficiency.
Shares of Corpay have significantly outpaced the broader market over the past 52 weeks. CPAY has rallied 31.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 17%. Moreover, on a YTD basis, the stock is up 9.5%, compared to SPX’s 1.3% gains.
Zooming in further, CPAY outperformed compared to the iShares Expanded Tech-Software Sector ETF’s (IGV) 15.3% return over the past 52 weeks.
CPAY rose 2.4% following its Q4 earnings release on Feb. 5. Revenue grew 10% year-over-year to $1.03 billion, missing the $1.05 billion consensus estimate, while adjusted earnings of $5.36 per share rose 21%, slightly beating Wall Street’s $5.33 forecast. For fiscal 2025, Corpay projects revenue between $4.35 billion and $4.45 billion and adjusted earnings between $20.75 and $21.25 per share.
For the current fiscal year, ending in December, analysts expect CPAY’s EPS to grow 11.5% year over year to $19.76. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on one other occasion.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 11 “Strong Buy,” two “Moderate Buy,” and five “Hold” ratings.
The configuration is slightly more bullish than two months ago, with 10 analysts suggesting a “Strong Buy.”
On Feb. 6, RBC Capital's Daniel Perlin raised Corpay’s price target to $400 from $354 and maintained a “Sector Perform” rating, citing solid growth despite macroeconomic challenges impacting guidance.
The mean price target of $416 represents a 12.3% upside from CPAY’s current price levels, while the Street-high price target of $450 suggests upside potential of 21.4%.
On the date of publication, Rashmi Kumari 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.
