Deutsche Bank Lowers Price Target On Seaspan to $18

According to Deutsche Bank, Seaspan SSW price target is lowered to $18. Deutsche Bank said that SSW announced it has three firm contracts for 10,000 TEU vessels with a Chinese shipyard. “Our lower estimates were primarily driven by higher interest expense and higher SG&A costs as well as Q2 actuals. The results also include the increased capex from the new vessel orders. Our lowered price target of $18 (down from $27) is achieved by applying a lowered 10x (from 11x) EV/EBITDA multiple to our 2012 EBITDA estimate of $498.6 million.” Seaspan closed yesterday at $11.40.