Matson initiated with a Buy at Jefferies

Jefferies initiated coverage of Matson (MATX) with a Buy rating and $125 price target The shares have corrected, “setting up a compelling buying opportunity,” the analyst tells investors in a research note. The firm says the recent investor focus has been on lower U.S. import volumes, which have been reflected already by declining container rates since February. Spot rates, however, have steadied since mid-March, and Matson offers a stable domestic revenue stream with “optionality” on the international transpacific trade, which could see rates surprise higher in the coming weeks, contends Jefferies.