‘Headwinds’: Stifel downgrades Matson to ‘hold’ as economy slows and inflation mounts

Stifel has lowered its rating on Matson as the US Jones Act container ship owner faces multiple headwinds, despite earning higher profit compared to a year ago.

The US investment bank has downgraded its rating on Matson’s shares to ‘hold’ from ‘buy’ while dropping its price target to $93 from $131.

“We are taking down our 2023 and 2024 estimates on tempered expectations around pricing amid softer container rates, volume headwinds associated with slowing economic activity and broad cost inflation,” analyst Ben Nolan wrote in a note to clients.

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