ZIM Integrated Shipping Services Generated Strong Cash Flows In 2024: Analyst

Shares of ZIM Integrated Shipping Services Ltd ZIM tanked in early trading on Thursday, despite the company reporting upbeat fourth-quarter results.

The company strong cash position offers it "plenty of flexibility," according to Jefferies.

The ZIM Integrated Shipping Services Analyst: Analyst Omar Nokta maintained a Hold rating and price target of $18.

The ZIM Integrated Shipping Services Thesis: The company delivered a strong performance in 2024, Nokta stated.

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The built-up cash of $3.2 billion gives ZIM Integrated Shipping Services "a cushion to fall back on should freight rates weaken." It also gives the company with "ample flexibility to withstand potential market pressures," he added.

The company has significantly reduced its cost structure and has plans to further improve it in the coming quarters. The quarterly cash burn, which had reached $350 million in 2023, has reduced to just $225 million and it is likely to decline to $175 million in 2026, he said.

ZIM Integrated Shipping Services' 2025 EBITDA guidance range of $1.6 billion to $2.2 billion. That’s broadly in-line with expectations, Nokta stated. The company's full-year guidance "could prove more conservative than optimistic," he further wrote.

Price Action: Shares of ZIM Integrated Shipping Services had declined by 6.66% to $18.09 at the time of publication on Thursday.

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