Corpay Sells PayByPhone to Lightyear Capital to Simplify Portfolio
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy CPAY?
Source: seekingalpha
- Transaction Overview: Corpay announced the sale of its mobile parking payments business, PayByPhone, to Lightyear Capital, marking a significant step in simplifying its business portfolio, although the terms of the transaction remain undisclosed.
- Stock Reaction: Following the announcement, Corpay's shares fell 3.34% in pre-market trading to $282.46, indicating a cautious market response to the news.
- Strategic Intent: CEO Ron Clarke stated that the transaction aims to accelerate the company's rotation towards a more focused corporate payments sector, reflecting a clear vision for its future business direction.
- Financial Impact: The transaction is expected to close in the second quarter and is not anticipated to materially affect the company's cash EPS outlook for 2026, demonstrating confidence in its financial stability.
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Analyst Views on CPAY
Wall Street analysts forecast CPAY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CPAY is 356.20 USD with a low forecast of 315.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 354.190
Low
315.00
Averages
356.20
High
400.00
Current: 354.190
Low
315.00
Averages
356.20
High
400.00
About CPAY
Corpay, Inc. is a corporate payments company that helps businesses and consumers manage and pay expenses. The Company's suite of payment solutions helps customers to manage vehicle-related expenses, such as fueling and parking; travel expenses, such as hotel bookings; and accounts payable, such as paying vendors. Its segments include Vehicle Payments, Corporate Payments, Lodging Payments and Other. Its solutions include AP Automation, Cross-Border, Purchasing and T&E Cards, and Virtual Card. Its AP Automation solutions include Payments Automation, Invoice Automation, Purchase Order Automation and Integrations. Its Virtual Card solution provides a single-use card number for a specific amount, usable within a defined timeframe. Its trading platform and integrated payment solutions, which can be customized as per client’s business requirements. Its Cross-Border solution is used by its customers to pay international vendors, foreign office and for-profit repatriation and dividends.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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