Muneeba Kayani, an analyst from Bank of America Securities, reiterated the Sell rating on ZIM Integrated Shipping Services (ZIM – Research Report). The associated price target was lowered to $12.80.
Muneeba Kayani has given her Sell rating due to a combination of factors impacting ZIM Integrated Shipping Services. The primary concern is the significant decline in ocean freight rates, which have dropped by 45% year-to-date, even before potential trade disruptions. This decline, coupled with booking cancellations, has already started affecting demand in the shipping sector.
Additionally, the risk of a prolonged oversupply in the container shipping market is a major concern. The potential re-opening of the Red Sea could further exacerbate this oversupply. Furthermore, the ongoing tariff issues, particularly with China and Vietnam, pose a threat to global shipping demand. These factors, along with a forecasted decline in earnings, have led to a reduced price objective and a more cautious outlook for ZIM, justifying the Sell rating.
According to TipRanks, Kayani is ranked #8136 out of 9290 analysts.