Large movements at the price of shares in a low time usually indicate that the company has a vast positive impetus behind it. So when I saw FTSE 250 A company that has increased higher in recent weeks caught my attention. Here’s what I think it caused this movement, and where things could come from here.

Low player

I’m talking about road transport specialists Weight payment solutions (LSE: WPS). It trades as a Eurowag, which can be a more recognizable name for some people. The company offers payment solutions, with fuel payment cards and fees for accepted in over 15,500 locations throughout Europe. In addition, it has a useful application containing telematics, navigation, tax returns, fleet management and access to a truck park.

He earns money in two key ways. On the payment side he charges a transaction fee, so the more people utilize it, the more money they generate. On the side of mobile solutions, he charges a subscription and service fee. In both ways it is quite a reliable and low risk of making money.

Reasons for the jump

Over the past month, no information specific to the company has been disclosed. However, I think that some of the movements can be attributed to robust financial results from the previous Q2. Net revenues increased by 14% compared to the previous year, and the high corrected Ebidt margin in the amount of 41.6% meant that before taxing he recorded a profit of EUR 11.7 million. It was much better than the loss of over EUR 100 million last year.

The company also begins to experience the benefits of the Inlelo Group in 2023 and most of the digital properties of FireTMS fleet solutions. The chairman commented on “Eurowag with each new acquisition gained an additional product with a critical mission point.” Of course, investors are excited about what this can mean financially in 2025 and later.

The recommendations of leading banks were another key factor. Last month both Jefferies AND Citi Analysts gave the purchase to the purchase. From the current level 87p, 12-month institution prices are 103 pens and 98p, respectively. Some consider such recommendations as a good reason to buy shares.

My prospects

In the case of the last jump, the price to profit ratio is 17.98. It is above the number 10, which I utilize as a fairly fair value point, so I would not like to buy only on the basis of a valuation.

One of the problems is whether we see an increased geopolitical and regulatory risk in Europe. Acting throughout Europe exposes Eurowag to regulatory changes in fees for seats, broadcasts and transport policy.

Even with this problem I like the stable and reliable nature of his business activity. He doesn’t try to do anything fancy, but provides products and services that the transport sector needs. That is why I think that investors are growth actions.