UPDATE: Bank of America Upgrades World Fuel Services to Neutral on Lower Risk
Bank of America reduced its rating on World Fuel Services (NYSE: INT) from Underperform to Neutral and raised its price objective from $38 to $41.
Bank of America commented, "We are upgrading World Fuels Services to Neutral from Underperform, as it posted an in-line quarter but reduced a significant risk overhang with regard to its exposure to commodity exchanges (it incurred $106 million of negative cash flow in 2Q as a result of posting $140 million in cash collateral deposits due to oil prices declining). … Despite a weak macroeconomic environment, which continues to pressure demand, particularly in the marine segment, we believe its reduction of risk will allow it to generate steady cash flow, and upgrade our rating to Neutral from Underperform.
World Fuel Services closed at $38.51 on Friday.
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