ZIM Integrated Shipping: Prime Days May Be Over For Now
Summary
- ZIM finished 2024 on a high note, concluding a very strong year for the container shipping company. Shareholders were rewarded handsomely through dividends and price appreciation.
- The 2025 guidance implies a much cooler year and reflects the high uncertainty regarding the Red Sea reopening and geopolitics.
- Reciprocal tariffs can quickly get out of control and result in a global trade war. ZIM Integrated Shipping is highly exposed to the Pacific trade.
- ZIM is no longer the agile fleet operator it used to be. The company's shift to long-term charters may limit its ability to react quickly to any downturn.
- Valuation models imply a significant downside risk for the stock, leading me to maintain the 'Sell' rating on the stock.
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