ZIM Integrated Shipping stock outlook: Jefferies sees 50% upside

ZIM Integrated Shipping Services Ltd (NYSE: ZIM) opened sharply up on Monday after a Jefferies analyst issued a super bullish note in its favour.

Zim Integrated Shipping stock could climb to $20

Omar Nokta upgraded shares of the cargo shipping company this morning to “buy” and raised his price target to $20 that suggests a near 50% upside on their previous close.

The analyst is constructive on ZIM Integrated stock primarily because it has now switched from cash burn to significant cash generation.

He’s positive on $ZIM even though it’s expected to lose $1.33 a share in its current financial quarter versus $3.44 per share of earnings a year ago.

What Red Sea situation means for Zim Integrated Shipping?

The bullish call arrives shortly after a report said the recent gain in ZIM Integrated Shipping Services Ltd could be rather short lived (find out more).

But Omar Nokta of Jefferies continues to see significant upside in $ZIM on the back of Red Sea diversions. His research note reads:

Note that ZIM Integrated stock has already more than doubled over the past two months. The New York listed shares of the Israeli company do not currently pay a dividend.