A Wachovia Capital Markets analyst upgraded Seaspan Corp. on Tuesday, saying shares of the container ship company are poised to rebound after Monday's public stock offering.
Justin B. Yagerman raised Seaspan to "Outperform" from "Market Perform" in a note to investors.
On Monday, Hong Kong-based Seaspan offered 7 million shares for sale to raise about $193.9 million. It also said certain executives will buy about $18.1 million in shares from the company.
Yagerman said the subsequent decline in price _ shares fell 86 cents, or 3 percent, to close at $28.06 Monday _ was a "minimal" dilution in value, with the stock likely to bounce back.
He said he expected Seaspan to use the public offering to make final payments for six vessels delivered in 2008 and additional vessels in early 2009.
"We believe (Seaspan) has mitigated much of the near-term risk to its stock price," Yagerman said.
Yagerman lowered his per-share earnings estimate in the wake of the sale, to $1.18 from $1.21 for fiscal 2008, and to $1.44 from $1.54 for fiscal 2009.
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