
WEX (WEX) Stock Forecast & Price Target
WEX (WEX) Analyst Ratings
Bulls say
WEX Inc. is expected to achieve a slight revenue and EPS beat in Q1, driven by improved fuel prices and high incremental margins, which could lead to rising estimates. The company's core Fleet card business is well-positioned within a large global total addressable market (TAM), and there are expectations for organic revenue growth to compound at 8% over the next five years while free cash flow margins may expand to 41% by year five. Additionally, the company is poised for strong EBIT margin expansion and a reduction in costs associated with bad debt and fraud, further enhancing its competitive advantage and profitability.
Bears say
WEX Inc faces significant challenges as management indicates that each $0.10 decline in fuel prices adversely impacts earnings per share (EPS) by approximately $0.20, highlighting the sensitivity of its revenue to fuel costs. Additionally, the company's segment growth rate falls short of its long-term target, recording only about 2% growth excluding fuel price headwinds, compared to the expected 4%-8% target. Furthermore, WEX's valuation metrics, including a projected trading multiple of 11.7 times estimated 2025 EPS, suggest a persistent discount relative to market averages, indicating potential difficulties in achieving compelling stock performance amidst operational and market pressures.
This aggregate rating is based on analysts' research of WEX and is not a guaranteed prediction by Public.com or investment advice.
WEX (WEX) Analyst Forecast & Price Prediction
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