Barclays Maintains an 'Equalweight' on Seaspan (SSW); Tender Offer and Management Acquisition Creating Value
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Price: $9.91 --0%
Rating Summary:
2 Buy, 7 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 7 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Equalweight' on Seaspan (NYSE: SSW) price target of $16.00.
Barclays analyst says, "Seaspan's recent announcement to acquire the company's management entity along with a tender offer for up to ~14% of public float at a significant premium signal confidence in the company's future prospects. We expect markets will welcome the more straight forward management structure and believe SSW shares should reverse the recent negative trend following these transactions. The containership market remains subdued as global economic and trade growth have stagnated in 2011. However, SSW's long duration charters insulate the company from near-term market volatility and the announced transactions should support a better earnings outlook."
"Transactions should be accretive for common holders - Following the SSW management company acquisition, tender offer and redemption of certain preferred shares, we expect upwards of 17c of accretion to common holders. We are raising our estimates accordingly for SSW; 2012E raised to $1.44 from $1.27."
For an analyst ratings summary and ratings history on Seaspan click here. For more ratings news on Seaspan click here.
Shares of Seaspan closed at $12.34 yesterday.
Barclays analyst says, "Seaspan's recent announcement to acquire the company's management entity along with a tender offer for up to ~14% of public float at a significant premium signal confidence in the company's future prospects. We expect markets will welcome the more straight forward management structure and believe SSW shares should reverse the recent negative trend following these transactions. The containership market remains subdued as global economic and trade growth have stagnated in 2011. However, SSW's long duration charters insulate the company from near-term market volatility and the announced transactions should support a better earnings outlook."
"Transactions should be accretive for common holders - Following the SSW management company acquisition, tender offer and redemption of certain preferred shares, we expect upwards of 17c of accretion to common holders. We are raising our estimates accordingly for SSW; 2012E raised to $1.44 from $1.27."
For an analyst ratings summary and ratings history on Seaspan click here. For more ratings news on Seaspan click here.
Shares of Seaspan closed at $12.34 yesterday.
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