Wright Express Rises on Fuel Price Lock

The South Portland, Maine-based payment processor said late Monday it locked in about 90 percent of fuel costs through the third quarter of 2009, 60 percent in the fourth quarter of 2009 and 30 percent for the first quarter of 2010.

The company locked in a fuel price range of about $3.17 to $3.23 per gallon for the first quarter of 2010. Comparatively, the on-highway price of diesel last week rose to an all-time high of about $3.82 per gallon, according to the U.S. Department of Energy.

Banc of America Securities Abhishek Gami said the rate was the best the company had ever secured. Gami raised 2009 estimates on the company by 25 percent, noting the company should benefit from increased volumes, lower credit losses and better cost controls.

The analyst maintained a $46 price target, and reiterated his "Buy" rating on the stock.

Gami said the company's earnings should be "resilient" to a slowing economy because of its stable business model and lower interest rates.

Shares rose $2.49, or 9 percent, to close at $30.04 Tuesday, after trading as high as $31.08 earlier in the session. The stock has traded between $24.98 and $41.12 in the past year.