Corpay (CPAY) PT Lowered to $400 at JPMorgan

JPMorgan analyst Jeffrey Zekauskas lowered the price target on Corpay (NYSE: CPAY) to $400.00 (from $420.00) while maintaining a Overweight rating.

The analyst comments "As promised post-strategic review, CPAY management continues to stay busy re-mixing its business to favor high-growth, high-retention corporate payments businesses, announcing an investment in mid-market AP automation player AvidXchange (with the ability to purchase in full within 3 years), following last week’s cross border strategic partnership with Mastercard. 1Q, itself, landed in-line with management expectations (slightly below street but within guide), with CPAY putting up 35% sales growth (faster in key CP businesses) on steady 92% retention, though calling out a bit of Airline-driven Lodging softness as the only surprise in the quarter. Of note, U.S. tariffs have not materially impacted cross border numbers, but management prudently decided to factor $10-$15M of softness into the 2H25 outlook to account for a potential slow down in the tariff exposed portion of the business (<20% of XB spend) that has not been observed yet. All told, FY25 outlook and our estimates are not materially changed (macro was a wash relative to initial 2025 guidance), though reported numbers come down a bit on lower fuel prices and push-out of some Lodging rev to 2026. We still see 10% organic revenue growth over the balance of 2025, ranking CPAY as one of the faster growers among mid-cap processors; we reiterate our Overweight rating and continue to trust this management team on M&A as a key differentiator."

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