Seaspan Price Target Raised by Janney

Seaspan received a slight boost to its price target Tuesday from Janney Montgomery Scott as the firm adjusted most of its estimates for 2017 and 2018 results higher for the charter owner and manager of containership marine vessels. The new price target is $8, up from $7.50 and above the stock’s Monday closing price of $6.74. Janney kept its investment rating on the stock at neutral.

The firm made slight upward revisions to its estimates for Seaspan’s 2017 revenue and 2018 revenue and adjusted earnings before interest, taxes, depreciation and amortization. It made a downward revision to its estimate for 2017 adjusted EBITDA, but noted that came as the firm excluded from Q2 2017 a gain considered non-recurring in nature. In making the revisions, Janney said it continues to view 2018 “as a transition year for SSW under potentially a new CEO (current officer scheduled to retire at end of [Q4 2017]) and only modest improvements in revenue charter rates related to smaller vessels on short-term market rate contracts due to current supply and demand trends at this time.” The firm noted the key changes are to its revenue charter rates and operating expenses, based on research around current and forward rates.

By Caroline Williams