ZIM - ZIM Integrated Shipping: Near-Term Outlook Remains Strong - Buy On Weakness
2024-05-22 07:30:00 ET
Summary
- Israel-based liner company ZIM Integrated Shipping Services reported disappointing Q1/2024 results, with profitability falling well short of expectations and elevated cash usage.
- On a more positive note, the company increased its full-year outlook and declared a cash dividend of $0.23 per share.
- Following the most recent jump in Transpacific spot rates, I would expect ZIM's Q2 results to show strong sequential improvement and outperform consensus expectations by a wide margin.
- Rates continue to benefit from the Red Sea crisis and a recent uptick in customer demand.
- While I wouldn't chase ZIM Integrated shares after the recent 100%+ rally, there might be further upside going into anticipated strong Q2 results in August.
- Consequently, I would consider using a potential near-term correction in ZIM stock to initiate or add to positions.
Note:
I have covered ZIM Integrated Shipping Services Ltd. ( ZIM ) previously, so investors should view this as an update to my earlier articles on the company. ...
ZIM Integrated Shipping: Near-Term Outlook Remains Strong - Buy On Weakness