Deutsche Sees Upside Potential in High-Teens for WEX Inc. (WEX)

WEX Inc. (NYSE:WEX) is one of the 10 best payment processing stocks to buy now. With a moderately bullish consensus sentiment, the stock currently has a 1-year price target of $182.29, resulting in an upside potential of over 34%.

On June 12, Deutsche Bank maintained a Hold rating on WEX Inc. while decreasing the target price from $180 to $160 following a meeting with the company’s management. Despite the downward adjustment to the price target, the estimate still implies more than 18% upside potential at the current level.

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The firm noted that the company’s shares experienced a sell-off in recent trading sessions, following news that Amazon.com Inc. (NASDAQ:AMZN) intends to expand its less-than-truckload logistics offerings. However, the firm noted that WEX management does not consider this development a concern for now.

Back in mid-May, WEX Inc. announced a new share repurchase program approved by its Board of Directors. Under this plan, WEX may repurchase up to $1 billion worth of its common stock, in addition to paying any related transaction costs and excise taxes.

WEX Inc. is a commerce platform that offers payment solutions, transaction processing, and analytics through its Mobility segment, alongside embedded payments and accounts payable automation through its Corporate Payments segment. It also offers a SaaS platform for healthcare benefits, COBRA accounts, health savings accounts, and full-service benefit enrolment solutions.

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