ZIM Stock In Spotlight After Price Target Hikes By Barclays, Jefferies: But Retail’s Not Sold
By Stocktwits Inc | First Published Nov 25, 2024, 6:33 PM ISTJefferies reportedly raised its price target on ZIM to $28 from $25, while keeping a ‘Hold’ rating on the stock.
Following its strong third-quarter earnings report, Israeli cargo shipping company ZIM Integrated Shipping Services ($ZIM) has received a slew of price target upgrades by brokerages.
Jefferies reportedly raised its price target on ZIM to $28 from $25, while keeping a ‘Hold’ rating on the stock. The brokerage noted that Q3 earnings "jumped off the charts," led by a strong freight market, but also due to management's deliberate action to avoid contracting at low rates and staying highly exposed to spot rates.
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At the same time, Barclays analyst Marco Limite reportedly raised the price target on the stock to $16.50 from $13.90, while keeping an ‘Underweight’ rating on the shares.
The brokerage has raised its fiscal 2024 earnings before interest, tax, depreciation, and amortization (EBITDA) forecasts by 10% following the company’s earnings announcement. However, it believes earnings will peak in 2024 and expects a correction in fiscal 2025 against the backdrop of oversupply and potential destocking.
Last week, ZIM reported a 117% year-over-year (YoY) rise in its third-quarter revenue to $2.765 billion, way above Wall Street’s estimate of $2.39 billion.
The company reported a net income of $1.13 billion compared to a net loss of $2.27 billion in the third quarter last year. Earnings per share came in at $9.34, significantly outperforming an analyst estimate of $6.95.
It also raised its guidance for the full-year 2024, expecting to generate adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) between $3.3 billion and $3.6 billion compared to an earlier guidance range of $2.6 billion and $3.0 billion.
Notably, the board declared a regular cash dividend of approximately $340 million, or $2.81 per ordinary share and a special dividend of approximately $100 million, or $0.84 per share.
Despite the bullish take by analysts, retail sentiment on Stocktwits flipped into the ‘bearish’ territory (39/100) from ‘bullish’ a day ago. The stock was trading nearly 4% lower in Monday’s pre-market session.
Still, some Stocktwits followers of the ticker believe there could be a buy-on-dips opportunity if the stock dips further.
One user has highlighted the firm’s dividend payout during the quarter.
For updates and corrections email newsroom[at]stocktwits[dot]com.
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