Citigroup says WEX's growth recovery to take longer, cuts to 'neutral'
15/01/2025 14:31
** Citigroup cuts rating on software company WEX Inc WEX.N
to "neutral" from "buy"; cuts PT to $190 from $260
** Ongoing challenges in mobility and corporate payments
segments expected to linger in 2025, with minor improvements
from contract renewals unlikely to significantly boost growth,
Citi says
** Brokerage adds WEX can manage temporary issues in
mobility segment, but needs clearer insights into client and
virtual card economics in corporate payments segment
** While upcoming Online Travel Agency renewal will not be
as significant as the 2024 renewal, factors like payment
economics, volume shifts or role changes could delay growth
recovery further in 2025, Citi says
** Six of 17 brokerages rate stock "buy" or higher, 11
"hold"; their median PT is $200 - data compiled by LSEG
** WEX stock fell ~10% in 2024
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com))