Shipping firm Zim jumps after Jefferies' upgrade, Street-high PT

Zim Integrated Shipping Services

29/01/2024 13:50

** U.S.-listed shares of Israeli shipping company Zim
 ZIM.N  rise 10% to $14.80 premarket
    ** Jefferies upgrades the stock to "buy" from "hold" and
hikes the PT to $20 from $14, the highest for the stock on Wall
Street, implying a 49% jump in the next 12 months
    ** On the contrary, median PT of eight brokerages covering
the stock is $9.20, which is a 31.5% downside to stock's last
closing price; average rating is "hold" - LSEG
    ** The story has changed for ZIM with cash burn shifting to
significant cash generation, Jefferies says
    ** Red Sea diversions are likely to continue for an extended
period, tightening capacity for longer, and ZIM is set to
capitalize - Jefferies
    ** Geopolitical situation in the Red Sea has become more
complex, prompting shipping companies to divert from the region
in rising numbers, with containership capacity utilization
jumping to 87% from 78% pre-diversions, brokerage estimates
    ** Zim is a highly shorted stock with 26.6% of its free
float in short position, per Ortex data
    ** Stock has more than doubled in value in the past two
months

 (Reporting by Medha Singh)
 ((medha.singh@thomsonreuters.com))