JPMorgan Downgrades ZIM Integrated Shipping Services (ZIM) to Neutral

JPMorgan analyst Samuel Bland downgraded ZIM Integrated Shipping Services (NYSE: ZIM) from Overweight to Neutral with a price target of $6.20 (from $14.00).

The analyst comments "We have standardised our freight rate assumptions for ZIM with recent reductions made at Maersk and Hapag-Lloyd, resulting in larger losses and we downgrade to Neutral as a result. While we do still think investors under-appreciate the reduction in cost base from ZIM’s fleet rotation in the mid-term, these rebased rate expectations remove upside for equity investors. We have also moved our valuation methodology to a p/b basis, which we think the large Q3 impairment makes more appropriate. Our forecasts are reduced materially, as is our TP."

For an analyst ratings summary and ratings history on ZIM Integrated Shipping Services click here. For more ratings news on ZIM Integrated Shipping Services click here.

Shares of ZIM Integrated Shipping Services closed at $7.27 yesterday.

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