$以星综合航运(ZIM)$
ZIM Integrated Shipping (NYSE:ZIM) -15.4%in Thursday's trading after Citi downgraded shares to Sell from Neutral with a $13 price target, citing the stock's YTD rally and rising exposure to spot freight rates, which are expected to come under pressure.
ZIM (ZIM) has signed only ~35% of volumes on Trans-Pacific trade on contract, Citi analyst Sathish Sivakumar says, which is well below the industry standard of ~65% and lower than last year's 50%, also noting that ZIM carries 40% of its volume on the Trans-Pacific trade lane.
Sivakumar believes the recent move in spot freight rates - up more than 70% since the end of Q1 - is unlikely to sustain into this year's H2, and he sees downside risk to demand with Q4 down ~7% Y/Y, meaning the current supply/demand imbalance is set to unwind, resulting in pressure on freight rates.