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Research Alert: CFRA Keeps Buy Opinion On Shares Of Fleetcor Technologies

· 02/07/2021 19:09

12:05 AM EST, 02/08/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target by $17 to $292, 23x our '21 EPS estimate, aligned with peers. To factor in higher organic investment and dilution from the Rogers acquisition, we trim our '21 EPS estimate to $12.68 from $13.10 and set '22's at $14.45. FLT prints Q4 adj-EPS of $3.01 vs. $3.17, topping consensus by $0.19, aided by lower interest expense ($0.10) and share count ($0.13). Revenues came in at $617M but edged out consensus by $13M. Organically, revenues were down 8%, primarily due to soft transaction volumes, but sales performance returned to 90% of last year's level, providing improved forward momentum. FLT's move down-market to small and midsized business in Corporate Payments, coupled with improvement from more economically sensitive areas of its business (Fuel and Lodging), reinforces our belief that the company can jump-start organic growth (9% to 13%) and capture higher sales (~30% rise) in 2021. FLT's customer retention (92%) and record-low credit losses (~$6M in Q4) add to our bullish outlook.