Piper Jaffray Reiterates a 'Buy' on Wright Express (WXS); Raises Price Target & Estimates

June 26, 2009 8:12 AM EDT

Piper Jaffray & Co. reiterates a 'Buy' on Wright Express (NYSE: WXS). Price target increased from $28 to $32.

Piper analyst says, "Reiterate Buy – we believe the recent pullback in the shares, due to concerns over the regulatory treatment of ILCs that may never materialize or be phased in over a 5-year period, offers investors an attractive entry point...Increasing our '09/'10/'11 ests. from $1.65/$1.90/$2.05 to $1.67/$2.13/$2.30. Our estimate increases are driven by the rise in gas prices; we increased our average gas price assumption from $2.10 to $2.50...Maintaining our forecasts for transaction growth and % of fleet credit losses."

"Eventual regulatory treatment of Industrial Loan Companies (ILCs) remains very unclear at this point, and we believe that a worst case outcome is highly unlikely. Even if the ILC structure was eliminated, it appears that WXS would have five years to adjust. Most importantly, the strength of the WXS franchise would remain, which is primarily built upon its proprietary payment network and technology."

To see more analyst ratings on WXS Click Here.

Wright Express Corporation (Wright Express) is a provider of payment processing and information management services to the United States commercial and government vehicle fleet industry.

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