JPM cuts ZIM Integrated on uncertain spot rate view, shares slip

Zim Integrated Shipping Services

21/04/2023 11:42

** J.P.Morgan downgrades Israel-based shipping co ZIM
Integrated Shipping Services  ZIM.N  to "neutral" from
"overweight" over uncertain spot rate outlook, sending its
U.S.-listed shares down 2.8% to $19.83 in premarket trading
    ** Brokerage also slashes PT to $20.8 from $27.0, citing
recent div payment
    ** JPM expects co' profits to underperform peers over next
2-3 years on high cost of ship charters
    ** "Clearly, there are risks beyond 2023, given the
orderbooks for delivery in 2024 and 2025, and we presume ZIM
will under-shoot industry average profitability, given its high
unit costs" - brokerage
    ** Still, JPM leaves its forecasts for ZIM unchanged
    ** "While the recent improvement in Transpacific rates is
welcome, we are unsure on its longevity" - brokerage says 
    ** Stock ended at $20.41 on Thursday, below the new PT
    ** Up to last close, stock had risen ~19% YTD

 (Reporting by Khushi Singh)
 ((Khushi.Singh@thomsonreuters.com;))