Stifel Downgrades Seaspan (SSW) to Sell on Valuation

Stifel analyst Benjamin Nolan downgraded Seaspan (NYSE: SSW) from Hold to Sell with a price target of $10.50 (from $10.00).

The analyst comments "Seaspan shares have traded up 78% since the beginning of 2019 (vs. up 33% for the S&P500). While EBITDA has grown 28% in the last three years, and we expect a further 17% increase in 2020, most of the equity return is multiple expansion with SSW trading at 9.4x our estimate of 2020 EBITDA vs. ~7x forward EBITDA in 2018. While container market conditions are improved, we don't believe the picture for the container shipping industry has changed that dramatically to warrant what we view as elevated multiples beyond historical levels. And while the company is in the process of transitioning into adjacent industries with hopefully better returns, Seaspan will remain primarily a container shipping company for the medium term. With a stretched valuation we avoid the shares given the currently priced risk/reward."

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 $13.90 yesterday.

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