ZIM stock rises on acquisition rumors despite BofA’s underperform rating

Published 11/08/2025, 18:48
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Investing.com - ZIM Integrated Shipping Services (NYSE:ZIM) shares jumped approximately 12% following acquisition speculation, even as BofA Securities maintained its underperform rating and $14.80 price target on the stock. The company, currently valued at $2.08 billion with a price-to-book ratio of 0.47, has shown significant volatility in its trading patterns according to InvestingPro data.

Israeli publication Calcalist reported that ZIM could potentially be acquired for up to $2.4 billion, according to BofA Securities analyst Muneeba Kayani. BofA noted that this potential bid would imply an enterprise value of $5 billion, representing a 2025 estimated EV/EBITDA of 2.4x and P/B of 0.6x for the shipping company. With current EBITDA at $2.91 billion and impressive gross profit margins of 48.21%, InvestingPro subscribers can access comprehensive valuation metrics and 10 additional ProTips to evaluate this potential deal.

BofA referenced earlier speculation from March about ZIM’s CEO potentially taking the company private, though that transaction did not materialize and no price was mentioned at that time.

ZIM is scheduled to report second-quarter earnings on August 20, with BofA forecasting Q2 EBITDA of $667 million, approximately 19% above consensus estimates, driven by higher volume and rates projections.

BofA’s 2025 adjusted EBITDA estimate of $2.1 billion aligns with consensus and falls at the upper end of ZIM’s guidance range of $1.6-2.2 billion, though the firm acknowledged that recent guidance upgrades by industry peers could potentially lead ZIM to raise its 2025 earnings outlook with its upcoming results.

In other recent news, ZIM Integrated Shipping has been at the center of significant developments. The company reported strong first-quarter earnings that exceeded expectations, highlighting its robust performance. However, the outlook for the rest of 2025 remains uncertain due to fluctuating market conditions. In a notable move, CEO Eli Glickman, alongside other executives and businessman Rami Ungar, has proposed a privatization bid for ZIM, valuing the company at up to $2.4 billion. This offer represents a considerable premium over its previous market capitalization. Analyst Omar Nokta from Jefferies has raised the price target for ZIM to $17.00, maintaining a Hold rating. This adjustment reflects the company’s recent performance and improved freight rates and volumes, which suggest a stronger end to the second quarter than initially expected. These developments indicate a dynamic period for ZIM Integrated Shipping, with significant corporate and market activity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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