Bank of America Securities Reiterates Sell Rating for ZIM Amid Declining Freight Rates and EBITDA Concerns.

Bank of America Securities analyst Muneeba Kayani has reiterated a Sell rating for ZIM, with a price target of $14.80. The rating is due to declining Transpacific freight rates, expected to drop 10% sequentially in Q2 and further in H2, and a lower adjusted EBITDA estimate of $2.1 billion. Despite potential volume growth, the cautious outlook on Transpacific volumes and reduced dividend per share estimate contribute to the Sell rating.

Bank of America Securities analyst Muneeba Kayani has reiterated a Sell rating for ZIM Integrated Shipping Services (NYSE: ZIM), with a price target of $14.80 [1]. The rating is based on several factors, including declining Transpacific freight rates and a lower adjusted EBITDA estimate.

According to Kayani, Transpacific freight rates are expected to drop by 10% sequentially in Q2 and further in H2. This decline, combined with a lower adjusted EBITDA estimate of $2.1 billion, contributes to the cautious outlook on the company's performance. Despite potential volume growth, the analyst remains skeptical about the long-term prospects, particularly given the reduced dividend per share estimate.

ZIM Integrated Shipping Services provides container shipping and related services in Israel and internationally. The company has seen fluctuations in its stock performance, with shares trading up $0.03 on Wednesday, July 15, 2025, to reach $15.60. The company's 12-month low was $11.04, and its 12-month high was $30.15 [1].

The company's latest quarterly earnings report, released on Monday, May 19, 2025, showed earnings per share of $2.45, beating analysts' expectations by $0.56. However, the analyst's concerns about the future outlook have led to a Sell rating.

Analysts from various brokerages have issued mixed ratings for ZIM. While some have maintained a Hold rating, others have downgraded the stock to a Sell rating. The consensus rating for ZIM is currently "Reduce" with a target price of $14.82 [1].

ZIM Integrated Shipping Services has a market capitalization of $1.88 billion, a P/E ratio of 0.80, and a debt-to-equity ratio of 1.16. The company's dividend payout ratio is 4.76%, with a recent dividend of $0.74 paid on Monday, June 9, 2025 [1].

Investors should carefully consider the latest analysis and the company's financial performance before making investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-teacher-retirement-system-of-texas-reduces-holdings-in-zim-integrated-shipping-services-ltd-nysezim-2025-07-15/