Note:

My previous coverage of ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) sets the stage for this update on the company.

In a twist of fate, Israel-based liner company ZIM Integrated Shipping Services Ltd. (“ZIM”) appears to stand as one of the greatest beneficiaries of the ongoing Houthi attacks on merchant vessels in the Red Sea.

Consequently, I am upgrading the company’s shares from “Hold” to “Speculative Buy” even at the risk of being late to the party.

Bottom Line

In a surprise twist of fate, the Houthis appear to have addressed worldwide containership over-capacities single-handedly, with Israel-based liner company ZIM Integrated Shipping being a prime beneficiary of the ongoing Houthi attacks on merchant vessels in the Red Sea.

As a result, I am upgrading the company’s shares from “Hold” to “Speculative Buy”

Risk Factors

Much depends on the situation in the Red Sea. Should the Western alliance somehow manage to put an end to the attacks in the near term, the industry will face over-capacities again, thus likely resulting in renewed pressure on container freight rates and in turn the company’s stock price.