Barclays Downgrades Wex Inc and Marqeta Inc

Barclays has downgraded Wex Inc (NYSE:WEX) and Marqeta Inc (NASDAQ:MQ) to equal weight from overweight due to growth headwinds in both firms.

WEX

Barclays has reduced its price target for WEX to $200 from $207. The brokerage highlighted the slowing growth in the U.S. fuel card market and continued pressure on yields in corporate payments.

Analysts see near-term challenges arising from volatile fuel prices and weaker client demand, indicating that greater clarity is needed regarding normalized growth rates.

Marqeta

For Marqeta, the price target was decreased to $4 from $5. Barclays mentioned regulatory delays impacting revenue growth and noted a moderation in tailwinds from high-growth verticals. Concerns over Marqeta’s slow move toward profitability and revenue diversification were also raised.

Barclays stated it would become more positive on both companies once growth stabilizes and key pressures diminish.

Despite these downgrades, Barclays is optimistic about the fintech sector, with an analyst commenting that “Sector sentiment is finally improving, as valuations seem to be trending back toward average historical levels.”

Barclays identified Block Inc, PayPal (NASDAQ:PYPL), Corpay Inc, and Global Payments (NYSE:GPN) Inc as top picks in the sector.