World Kinect (WKC) PT Raised to $26 at BofA Securities

BofA Securities analyst Ken Hoexter raised the price target on World Kinect (NYSE: WKC) to $26.00 (from $23.00) while maintaining a Underperform rating.

The analyst comments "We attended World Kinect’s Investor Day on March 13 in NYC, hosted by CEO Michael Kasbar, CFO Ira Birns, EVP Marine, Aviation & Land John Rau, and Investor Relations Elsa Ballard. The company targets 30% net operating margins in 2026 (we forecast 29.9%, from 29.6%), $480-$520 million in 2026 adj. EBITDA (we forecast $491 million, from $459 million), 8-10% CAGR from $386 million in 2023, and $900 million-$1.2 billion in aggregate Free Cash Flow 2024-2028. It aims to increase Land returns to 30% net operating margin in 2026 (we forecast 29.6%, from 25.5%), from 24% in 2023, and lower Corporate Expenses to 9% of gross profits (from 10% in 2023, we were 8%) which it sees generating additional $40 mil adj. EBITDA (vs ~$114 mil EBITDA growth by 2026)."

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