Kenon Holdings: Divesting ZIM, Breakout In Play Ahead Of Earnings
- Kenon Holdings (KEN) has gained 41% YTD, driven by higher global freight rates and strong Utilities-sector performance, despite volatile shipping rates.
- KEN's shareholder-friendly moves include a $3.80 dividend and stock buybacks, and it is exiting its stake in ZIM.
- Despite positive technical indicators and bullish seasonal trends, KEN faces challenges with high debt, negative GAAP EPS, and an uncertain earnings outlook.
- I maintain a hold rating on KEN, appreciating the yield and buybacks but wary of negative earnings and macroeconomic risks.
J Studios
Shares of Kenon Holdings Ltd. (NYSE:KEN) have performed very well so far in 2024 on a total return basis. Up 41% year-to-date, there have been tailwinds care of higher global freight rates, though the Drewry World Container Index (WCI) has been highly volatile. Strong
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