World Kinect initiated with a Neutral at JPMorgan

JPMorgan analyst John Royall initiated coverage of World Kinect with a Neutral rating and $25 price target. The analyst thinks upside exists in World Kinect’s Aviation business due to the continued recovery of air travel off of COVID lows, but says this dynamic is properly reflected in consensus estimates and in the share price. The company also carries risk around short-term moves in interest rates, and while rates could fall in late 2024, sentiment will be incrementally swayed by the market’s view of the timing and magnitude of any upcoming cuts, “which remains a hotly debated issue,” the analyst tells investors in a research note.