Reported 6 months ago
Shares of Zim Integrated Shipping Services (NYSE: ZIM) have surged in 2024 due to geopolitical tensions elevating shipping rates, but Citigroup recently downgraded the stock by 15%, foreseeing a decline. The company faced challenges in 2023 but rebounded due to increased demand in 2024, leading to a more than 100% rise. However, Citi's analyst, Sathish Sivakumar, believes the rate increase may not be sustainable, suggesting a potential 30% downside. With unpredictable factors like Middle East tensions and U.S. economic stability, investors are urged to weigh the advice and consider selling Zim shares, as the shipping industry's cyclicality may lead to a downturn.
Source: YAHOO