MATX - Matson rated Sell at Wolfe Research amid expected cyclical shift

Matson ( NYSE: MATX ) sailed slightly lower on Tuesday as Wolfe Research advised the ocean transportation provider is likely to tread water in coming years.

The firm’s analysts explained that while the Hawaii-based company has been “one of the biggest beneficiaries of the huge increase in ocean rates the past couple of years”, the good times cannot last forever. As such, investors would be best served by taking profits at present, in their view.

“We don't subscribe to the view that ocean rates will eventually normalize well above pre-COVID levels,” he advised. “As a result, we see risk of further downside to EPS for MATX in C24 as we view normalized EPS of around $5.”

Alongside a Sell-equivalent rating, the firm set an $80 price target for the stock, suggesting modest downside ahead.

Read more on Stifel’s recent downgrade, citing similar cyclical concerns .

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