Here's Why Citi Is Incrementally Bullish On FleetCor, WEX

Citi analyst Peter Christiansen expressed incremental bullishness on FleetCor Technologies, Inc FLT and WEX Inc WEX, lifting estimates and target prices on both, given rising fuel prices and solid demand signs.
As a reminder, the incremental flow-through on higher fuel was highly margin-accretive.
Christiansen upgraded WEX from Neutral to Buy on higher fuel and increased potential for better-than-expected travel volumes.
Both FLT and WEX remain at least 6-7 turns below their pre-pandemic multiples despite their strong rebounds towards “compounder” status.
Given FLT’s and WEX’s more niche end-markets, respective competitive moats, and compounding capability, Christiansen was against labeling them as “legacy” FinTech players.
Both names were likely to remain macro sensitive, though, at current levels, he saw rising investor interest beginning to gain traction, likely leading to multiple expansions ahead.
Price Action: FLT shares traded lower by 1.50% at $237.82 on the last check Friday. WEX shares traded lower by 0.92% at $171.29.