On Thursday, RBC Capital Markets analyst Daniel Perlin updated the firm’s outlook on Corpay shares, raising the price target to $400 from the previous $354, while maintaining a Sector Perform rating. The new target reflects confidence in the $27.09 billion market cap company, which is currently trading near its 52-week high of $391.1. Perlin’s assessment comes in light of Corpay’s ongoing growth amidst challenging macroeconomic conditions, which have impacted the company’s forward guidance.
Corpay’s corporate payments segment was highlighted as a strong performer, with the company maintaining an impressive 78.29% gross profit margin and generating $3.88 billion in revenue over the last twelve months. However, the company adjusted its fiscal year 2025 revenue and adjusted earnings per share (EPS) estimates to $4.4 billion and $20.75, down from the previously projected $4.5 billion and $22.15. This revision follows the latest quarterly results and guidance, taking into account the effects of foreign exchange fluctuations, fuel prices, and interest rates which have shifted unfavorably since Corpay’s last earnings call in November.According to InvestingPro, Corpay currently maintains a "GREAT" financial health rating, with 8 additional exclusive ProTips available to subscribers.
In addition, RBC Capital has introduced projections for fiscal year 2026, anticipating revenue and adjusted EPS to reach $4.9 billion and $23.65, respectively. The updated price target is based on rolling forward the valuation framework to fiscal year 2026 and represents a multiple of 17 times the projected adjusted EPS for that year, aligning with multiples of Corpay’s growth-oriented peers.
Perlin’s commentary underscores the balance between Corpay’s solid business performance and the broader economic factors influencing the company’s projections. The new price target reflects a comprehensive analysis of both the recent quarter’s achievements and the anticipated financial landscape for the coming years.
In other recent news, Corpay has been the focus of revised stock price targets from BMO Capital Markets and Keefe, Bruyette & Woods, following the company’s recent earnings release. BMO lowered its Corpay stock price target to $440 from $450, citing macroeconomic factors such as foreign exchange depreciation impacting the company’s 2025 projections. Despite this, BMO analyst Rufus Hone recognized positive trends, such as the acceleration in fourth-quarter organic growth and raised guidance for 2025.
On the other hand, Keefe, Bruyette & Woods raised their price target for Corpay to $445 from $415, while maintaining an Outperform rating. This adjustment followed Corpay’s fourth-quarter 2024 earnings release and subsequent modification of the firm’s earnings per share estimates for 2025 and 2026. The firm acknowledged potential growth through mergers and acquisitions and capital management strategies.
In more recent developments, Corpay’s fourth-quarter earnings surpassed expectations, but revenue fell short of estimates, coupled with a weaker-than-expected guidance for 2025. The company reported adjusted earnings per share of $5.36, and revenue of $1.03 billion, missing expectations of $1.06 billion. For 2025, Corpay forecasts an adjusted EPS of $20.75 to $21.25 and revenue of $4.35 billion to $4.45 billion, both falling short of analyst projections.
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