ATCO - Atlas Corp. cut to Sell equivalent at BofA as APR Energy sheds contracts

Atlas Corp. (ATCO -8.5%) falls as much as 11% after missing Q4 earnings expectations, following by negative analyst commentary including a downgrade to Underperform from Neutral with a $14.50 price target, cut from $15.50, at Bank of America. Noting disappointing Q4 results from APR Energy as two major mobile power generation contracts ended with its equipment not yet redeployed, BofA's Ken Hoexter says "this is not the volatility we expected when the company moved to diversify away from pure containership chartering, yet is having a contrasting negative impact to results during the greatest containership market in a generation." Hoexter notes Seaspan is taking advantage of the record containership market by selling five vessels - and could sell as many as seven more - "which will negatively impact targeted revenues and EBITDA until its bridge of new vessels on order (67 to be delivered on its 133 base) ramps in 2023." "Shipping

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Atlas Corp. cut to Sell equivalent at BofA as APR Energy sheds contracts