Flight Safety Tech Inc (FLT)

[eFinanceMarkets]

FleetCor defended by Wells Fargo against Citron short report
FleetCor Technologies (FLT +1.8%) recoups part of yesterday's 5% drubbing caused by Citron's negative report that called FLT a "predatory company."
The report said FLT generates 56% of its revenue from customers, rather than from merchants, while competitor WEX has a fee structure that generates only 12% of total revenue from customers.
Wells Fargo's Timothy Will defends FLT, reiterating his Outperform rating and setting a valuation range of $170-$180, saying WEX generated at least 34% of its consolidated revenue in 2016 from customers, including 39% within the fleet segment; although FLT’s figure is much higher, it represents a “more comparable mix to WEX.”
Will says that while FLT’s generated 44% more revenue per transaction in its fuel card business than WEX in 2016, “we believe the premium is explained by business mix and not company-specific fee structures.”