Wells Fargo Upgrades SSW To Outperform

Wells Fargo is upgrading Seaspan Corporation (NYSE: SSW) to Outperform.

“We are upgrading SSW to Outperform as we believe SSW remains ‘best of breed' within the containership sector and we expect fundamentals across the containerized freight complex to remain firm in 2011,” Wells Fargo writes.

“After pulling back 11% since late October (versus the S&P, up 7%), SSW is now yielding 3.8%, which we view as solid compensation for owning through 2011 into 2012, at which point we expect material dividend upside potential. We believe SSW's dividend could more than double in 2012 (from $0.50/share), as it fulfills its orderbook commitments and starts returning value to shareholders. Our valuation range goes to $16-17 from $15-16.”

Seaspan Corporation closed Tuesday at $13.02.