ZIM - ZIM Integrated Shipping: Another 50% Upside After The Q2 Earnings Blowout

• This report updates ZIM Integrated Shipping (ZIM), an asset-light containership liner. I selected ZIM as a top idea in early February after a poorly-timed IPO plunged shares as low as $11/sh.
• I was very bullish in February, looking for $20-$30 by mid-2021 as ZIM still traded around $14-$15. Market rates have since improved far more than I expected.
• ZIM has boosted their guidance by more than 4x in just five months, pushing mid-range FY21 EBIT estimates from $950M to $4.2B!
• This report provides Q2-21 commentary and forward model estimates. I also address the misguided criticism against ZIM's asset-light operating structure and argue this is actually a strategic advantage.
• My latest ‘fair value estimate’ is $70.00 (52% upside), based on a combination of excess earnings potential and normalized residual value.

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