UPDATE - UBS Initiates Coverage on Box Ships (TEU) with a Buy; Revenues and Dividends Look Reasonably Resilient

UPDATE - UBS initiates coverage on Box Ships (NYSE: TEU) with a Buy rating. PT $12.50.

UBS analyst says, "While the stock performance so far has been disappointing, revenues and dividends look reasonably resilient to us, which we expect to dig the stock out of its post-IPO hole sooner or later."

"All of the company’s vessels are chartered under contract (i.e. no spot market exposure) for the remainder of 2011, and 87% of 2012 days are also contractually accounted for. This provides a high degree of revenue visibility through 2014, which should underpin a dividend yield of about 13% for full-year 2012. Nearer term, our dividend estimates are $0.15 in Q2 (stub period) and $0.31 in Q3 and Q4."

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