- Matson (MATX -24.5%) shares suffer their biggest selloff ever amid concerns over a new competitor to its West Coast-to-Hawaii shipping business.
- TOTE Maritime yesterday announced plans to establish a new shipping service to Hawaii, and has signed a letter of intent to acquire up to four newbuild containerships similar in size to the Aloha-class vessels now being built for MATX.
- In response, Stephens downgrades MATX to Equal Weight from Overweight with a $23 price target, slashed from $36, citing competition concerns in MATX's core shipping lane and anticipating "significant multiple contraction for MATX... and an extended period of volatility and uncertainty for the stock."
- Also, Wells Fargo (NYSE:WFC) downgrades MATX to Underperform from Market Perform with a $22 price target, cut from $35.
- Now read: Sell Diana Shipping Inc. Due To Its Evaporating Liquidity; Buy Star Bulk Carriers And Scorpio Bulkers As A Hedge
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