Jefferies Downgrades Matson to Hold, Shares Fall

Matson shares fell after Jefferies downgraded the company to "Hold" from "Buy" and lowered its price target to $115 from $135. The downgrade came after the company reported Q1 2025 earnings, with revenue of $782M, below FactSet estimates of $794.3M. Matson also announced leadership succession plans for its logistics unit and increased its share repurchase program.

Matson Inc. (MATX) shares experienced a decline following a downgrade from "Buy" to "Hold" by Jefferies analysts. The downgrade, announced on July 18, 2025, was accompanied by a reduction in the stock's price target from $135 to $115. The move came after the company reported its Q1 2025 earnings, which fell short of FactSet estimates, and as the company announced leadership succession plans for its logistics unit and an increased share repurchase program.

Jefferies cited continued weakness in China-U.S. container volumes and pressure on freight rates as the primary reasons for the downgrade. The firm expects Matson's Q2 earnings to be ahead of prior estimates, maintaining its EPS forecast at $2.18, but has lowered its third-quarter EPS forecast to $2.38 from $3.49 and its full-year estimate to $8.99 from $10.64. The broker also noted that while Matson may outperform broader volume trends due to growth in Vietnam shipments, visibility into the rest of the year remains low given the weak peak season so far [1].

Matson's stock typically commands premium pricing due to its high-speed service, but broader market softness is weighing on expectations. The company's volumes declined sharply in April but saw a short-lived boost in May following a temporary China-U.S. tariff reprieve. However, activity softened again in June and into July, with spot rates dropping back toward early-year lows [1].

Matson's share repurchase program has also been expanded. The company's BlackRock Municipal 2030 Target Term Trust (BTT) has reauthorized its open market share repurchase program, allowing it to repurchase up to 5% of its outstanding common shares through November 30, 2025 [2].

Investors should monitor Matson's performance closely as analysts continue to evaluate the company's financial trajectory and market dynamics. The company's ability to navigate the current market conditions and execute on its strategic plans will be crucial for its future performance.

References:
[1] https://www.investing.com/news/stock-market-news/jefferies-downgrades-matson-on-china-trade-weakness-lowers-target-to-115-4142405
[2] https://www.businesswire.com/news/home/20250228368774/en/BlackRock-Municipal-2030-Target-Term-Trust-BTT-Announces-Share-Repurchase-Program