Investing.com — Barclays downgraded Wex Inc (NYSE:) and Marqeta Inc (NASDAQ:) to equal weight from overweight, citing growth headwinds in both companies.
For WEX, Barclays (LON:) lowered its price target to $200 from $207. Brokerage flagged slowing growth in the U.S. fuel card market and persistent yield pressure in corporate payments.
Barclays sees near-term challenges from volatile fuel prices and weaker client demand, with further clarity needed on normalized growth rates.
For Marqeta, the price target was cut to $4 from $5. Barclays pointed to regulatory delays weighing on revenue growth and moderating tailwinds from high-growth verticals. The brokerage also flagged Marqeta’s slow progress toward profitability and revenue diversification.
Barclays said it would turn more constructive on both stocks once growth stabilizes and key pressures ease.
Though it was bullish on the fintech sector as analyst said “Sector sentiment is finally improving, as valuations appear to be trending back toward average historical levels.”
Barclays named Block Inc, PayPal (NASDAQ:), Corpay Inc, Global Payments (NYSE:) Inc its top pick in the sector.
