Spur for Seaspan

Fleet expansion and a rising dividend have led Wells Fargo to upgrade shares in Seaspan.
Gerry Wang

Gerry Wang

Analyst Michael Webber has lifted the New York-listed containership owner from market perform to outperform.

Webber argues the owner offers investors a “compelling” risk reward profile at this point in the cycle due to its preference for period contracts and growing shareholder payouts.

Gerry Wang-led Seaspan has a fleet of 89 container vessels including newbuildings, which will generate core operating profit of around $650m through 2016, the analyst says.

“SSW's dividend has historically grown by over 40% per year going back to 2011, and while we believe the pace of dividend hikes will likely ease as its orderbook delivers … we believe that its yield offers a degree of downside risk protection,” Webber said.

Despite his positive view of Seaspan, Webber says the outlook for the container sector is tepid.

“While fundamentals for the container complex remain pretty bland, we believe there are some lower-risk pockets of exposure that are worth buying at this point in the cycle,” he said.

Seaspan Corp
Last+/- %+/-High
  • Seaspan eyes new funds

    New York-listed Seaspan Corporation is plotting more fundraising after registering a potential share sale worth up to $75m.
  • P3 flop good for lessors

    China’s refusal to back huge alliance is positive for listed boxship companies, Stifel says.
  • Longhe in the crosshairs

    Sino-Global Shipping closes in on acquisition of Qingdao Zhenghe’s management unit.
  • Officers union holds fire

    Seaspan Marine has struck a deal with a tug officers’ union to hold off their threatened strike in the port of Vancouver.