ZIM Integrated Shipping Services (ZIM), mcap=$7.8bn, price $64.70 vs $57.44

Pitch: A bet on elevated container shipping rates being sustained due to an insufficient amount of ships following years of underinvestment. ZIM is the cheapest (<1xEBITDA) among peers and is projected to end 2022 with more cash than the current market cap. Asset light business model, whereby most of ZIM 118 vessels are chartered through 1-5 year leases. Strong operating leverage.

Valuation: ZIM trades at EV/EBITDA of 0.8x versus peers at 3.1x while achieving a higher ROA. Multiple expected to expand with the accumulation of cash and continued shareholder distributions.

Exp. gain: +176% to $185

Full ZIM write-up (free guest account required):

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