WEX Poised for Comeback: Analyst Sees 30% Upside

Loop Capital has initiated coverage on WEX, a global commerce platform, with a buy rating and a $195 price target, suggesting a potential 30.8% upside from its recent closing price. The investment firm's positive outlook is based on WEX's management team successfully acquiring new business.

These new customer wins are projected to contribute more significantly to revenue growth in 2026 compared to 2025. Analysts anticipate that as the same-store sales within WEX's mobility segment recover, combined with company-specific initiatives, this will drive accelerated revenue growth and expanded operating margins.

WEX operates across three core segments: mobility, benefits, and corporate payments. The mobility segment provides crucial payment solutions, transaction processing, and information management services. Loop Capital specifically expects a comeback for WEX, particularly within its over-the-road business, which constitutes approximately 30% of the mobility segment's revenue.

Despite a recent decline in its stock price, falling nearly 4% over the past three months and trading more than 20% below its 52-week high, Loop Capital believes concerns about mobility processing take-rate headwinds are temporary. The firm forecasts an improvement in these rates from the first quarter of 2026 levels, beginning in the second half of 2026 and extending into 2027, contingent on fuel prices normalizing.

This optimistic call from Loop Capital contrasts with the broader market consensus, where most analysts maintain a 'hold' rating on WEX shares.