In a report released yesterday, Muneeba Kayani from Bank of America Securities reiterated a Sell rating on ZIM Integrated Shipping Services (ZIM – Research Report), with a price target of $16.00.
Muneeba Kayani’s rating is based on several key factors impacting ZIM Integrated Shipping Services. The company’s 2025 guidance suggests a significant reduction in expected earnings, with adjusted EBIT projected to be between $350 million and $950 million, which is notably lower than market consensus. This reduction is attributed to anticipated lower freight rates and geopolitical uncertainties, which are expected to affect the company’s performance, particularly in the second half of the year.
Additionally, ZIM faces potential cost increases due to its fleet composition, which includes a significant portion of Chinese-built ships that may be subject to levies. While ZIM could mitigate some of these costs by adjusting trade routes, the overall financial outlook remains challenging. Furthermore, despite a strong dividend payout in 2024, the forecast for 2025 suggests limited dividend potential due to expected net losses in the latter half of the year. These factors collectively contribute to the Sell rating assigned by Muneeba Kayani.
According to TipRanks, Kayani is ranked #8450 out of 9347 analysts.