World Kinect: Raymond James Downgrades to Outperform, PT to $33 from $35.

World Kinect: Raymond James Downgrades to Outperform, PT to $33 from $35.

In a recent update, Raymond James has downgraded its rating on World Kinect Corporation (NYSE: WKC) from "Buy" to "Outperform," while lowering its price target from $35 to $33. This adjustment follows the company's Q2 earnings release, which showed a robust performance.

World Kinect reported a Non-GAAP EPS of $0.59 for the second quarter, beating the consensus estimate by $0.11 [1]. The adjusted EBITDA for the period stood at $87 million, reflecting a strong operational performance. Additionally, the company repurchased $35 million of common stock, indicating a commitment to shareholder value.

Looking ahead, World Kinect has provided gross profit guidance for the third quarter, expecting a range of $252 million to $262 million, as the company's transformation accelerates [1]. This guidance underscores the company's commitment to growth and efficiency.

Despite the positive earnings report, Raymond James cited the potential for increased competition and regulatory risks as reasons for the downgrade. The analyst firm expects the market to remain challenging but believes World Kinect's strategic initiatives will position it for long-term success.

References:
[1] https://seekingalpha.com/news/4476531-world-kinect-non-gaap-eps-of-0_59-beats-by-0_11