ZIM Integrated downgraded to Sell from Neutral at Citi

Citi downgraded ZIM Integrated to Sell from Neutral with a $13 price target. The analyst believes the recent move in the spot freight rates up by more than 70% since end of Q1 is unlikely to sustain into the second half of 202. The firm’s work on the import into the U.S. and credit card spend points to downside risk to demand with Q4 down around 7%year-over-year Hence, Citi expects the current supply and demand imbalance to unwind, resulting in freight rate pressure, the analyst tells investors in a research note. The firm cites ZIM’s recent rally and its exposure to spot freight rates for the downgrade.