Janney Montgomery Scott Downgrades Wright Express (WXS) to Hold
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Janney Montgomery Scott downgrades Wright Express Corporation (NYSE: WXS) from Buy to Hold. Price target lowered from $32 to $22.
Janney analyst says, "As part of its regulatory reform white paper issued last week, the Treasury Department has proposed all commercial enterprises currently owning a non-bank bank subsidiary convert to a bank-holding company status or forfeit access to FDIC deposit insurance. This has negative implications for Wright Express, which owns an industrial loan corporation named Wright Express Financial Services Corp...We are lowering our FY 2010 EPS estimate to $1.80 per share, from $1.90 due to higher funding cost assumptions. We assume the cost of funding increases next year to 7.0% (from 4.75%), adding an incremental $10 million of operating interest expense."
To see more analyst ratings on WXS Click Here.
Wright Express Corporation, together with its subsidiaries, provides payment processing and information management services to the commercial and government vehicle fleet industry in the United States, Canada, New Zealand, and Australia.
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