FleetCor Technologies (FLT) PT Lowered to $255 at Jefferies

Jefferies analyst Trevor Williams lowered the price target on FleetCor Technologies (NYSE: FLT) to $255.00 (from $300.00) while maintaining a Buy rating.

The analyst commented, "Well-anticipated 2Q top-line beat on higher fuel; despite fuel upside, expecting margins to miss for the third consecutive qtr. Our updated 2Q reported revenue est. of $832mn implies ~2% upside to Street, with most of the delta attributable to our higher Fuel segment revenue ($354mn vs. $343mn Street). Despite the fuel upside (which typically drops straight to the bottom-line), we expect pressure on margins in 2Q relative to Street, reflecting ongoing investments in IT infrastructure to support digital go-to-market capabilities. We believe the margin disconnect in 2Q is primarily due to the cadence of Street margins, though a third consec. miss despite fuel upside will do little to assuage fears of structural pressure."

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