Fearnley downgrades ZIM Integrated to Hold with focus on 2025

As reported earlier today, Fearnley downgraded ZIM Integrated to Hold from Buy with a reduced $25 price target. Shares of ZIM are u p3% to $22.92 in morning trading. The firm said yesterday’s guidance upgrade from ZIM highlights the strong earnings the current market environment yields. However, sentiment of falling interest rates and acceleration of new builds in 2027 and 2028 warrants lower multiples than what was the case some months ago, the analyst tells investors in a research note. Fearnley expects 2025 to be the focus and with ZIM adding leverage and limited dividend distributions. Thus, the firm struggles to see “incremental triggers as a strong 2024 is baked into expectations.”