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Matson -24% as company faces new competition for lucrative trading routes

Published 08/18/2017, 01:09 PM
© Reuters.  Matson -24% as company faces new competition for lucrative trading routes
WFC
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MATX
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  • 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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