Wells Fargo Securities has initiated coverage on Matson, Inc. ahead of the company’s spinoff from parent Alexander & Baldwin in late June.
“We view Matson as a stable and differentiated value story, given its 3 percent forward dividend yield, solid balance sheet, and unique service offering that carries leverage to both traditional U.S. transport markets (logistics, point-topoint U.S. freight) and international trade (transpacific service to the USWC etc.),” said analyst Michael Webber. “However, given the lack of a clear near-term growth catalyst and liquid price discovery, we are initially rating shares as Market Perform.”
Alexander & Baldwin announced in December it was spinning off Matson, a shipping and logistics company focused on the Hawaii and Guam trades.
After completion of the separation, shareholders are set to receive one share of both Alexander & Baldwin and Matson stock for each share of stock they currently own. The separation is expected to be completed in the second half of 2012.
Trading for Matson as a separate entity begins July 2. – Eric Johnson
Wells Fargo starts coverage on Matson
