Earnings Update: Here's Why Analysts Just Lifted Their Corpay, Inc. (NYSE:CPAY) Price Target To US$390

Shareholders of Corpay, Inc. (NYSE:CPAY) will be pleased this week, given that the stock price is up 13% to US$374 following its latest third-quarter results. Results were roughly in line with estimates, with revenues of US$1.0b and statutory earnings per share of US$3.90. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Corpay

After the latest results, the 17 analysts covering Corpay are now predicting revenues of US$4.44b in 2025. If met, this would reflect a notable 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 24% to US$18.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.42b and earnings per share (EPS) of US$18.06 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.8% to US$390. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Corpay at US$440 per share, while the most bearish prices it at US$310. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Corpay's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Corpay'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.0% per year. So it's pretty clear that Corpay is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Corpay. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Corpay going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Corpay that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.