Citron Research Negative on Fleetcor Technologies (FLT); Sets $100 Short Term Price Target

(Updated - April 4, 2017 10:36 AM EDT)

Citron Research came out negative on Fleetcor Technologies, Inc. (NYSE: FLT), calling the company "a predatory company by design, whose core strategy is to methodically rip off its customers, using business practices and fees that are designed to deceive."

The group set a short-term price target of $100.

Citron highlights that competitor Wex (NYSE: WEX), which has a broader distribution of gas station network, has customer fees that are only 12% of revenue, compared to FleetCor's which are a "staggering" 56% of revenue.

The report highlighted last week's Capitol Forum piece, which showed that over the past 6 years Wex has received only 16 billing complaints versus 438 billing complaints for FleetCor.

Citron also highlighted this review, among many, which stands out:

"This company is not a fuel charge card, but rather, a FEES charge card. They will eat you ALIVE in fees. My experience has been that it is impossible to pay the bill to them (on time) without getting a $75.00 late fee. After doing some research I have found many, many, many, many people with the exact same complaint(s): late billing, nobilling, bi-weekly billing, overcharging, hidden fees, no customer support, non-working billing / payment portal, check-holding to create late fees!!!! This is border-line criminal."

Further, Citron highlights possible fraud at Fleetcor as the company blames billing problems on system or computer issues.

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