Corpay (CPAY) PT Raised to $434 at Raymond James, Top Idea for 2025

Raymond James analyst John Davis raised the price target on Corpay (NYSE: CPAY) to $434.00 (from $431.00) while maintaining a Outperform rating.

The analyst comments "Investment Thesis: We believe the set-up for CPAY entering 2025 remains very compelling despite solid performance last year (CPAY +20% vs equal weighted S&P 500 +11%). In our view, there are several tailwinds this year, including a continued rebound in Fleet and mid-to-high teens in Brazil, improvement in the partner channel with Corporate Payments, and a rebound across lodging due to system issues this year, which should result in accelerating organic growth back to 10%+ from just 6-7% in 2024. Moreover, the Paymerang and GPS deals are expected to contribute another ~300 bp to top line growth, although we would not be surprised to see upside to both revenue and cost synergies as these deals are right in CPAY’s wheelhouse. Simply put, we believe the combination of accelerating growth across all segments, potential deal integration upside, and further M&A are all potential catalysts and these could also further improve the multiple. To that point, the stock is still trading at just ~13x 2026E non-GAAP EPS, or a ~2-turn discount to the equal weighted S&P 500, despite mid-teens+ EPS growth. As such, CPAY is one of our top picks in 2025."

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