Citi says strong US consumer trends support growth outlook for Australia's Zip
BUZZ-Citi says strong US consumer trends support growth outlook for Australia's Zip ** Citi expects new product intiatives to continue driving growth in the U.S. for Australian buy-now-pay-later firm Zip Co ZIP.AX
** Adds Citi sees potential upside to its cash EBITDA forecast for fiscal 2027, through strong U.S. total transaction value (TTV) growth, higher net transaction margin and cost control
** Brokerage maintains "buy" call for stock, however trims target price by 10% to A$3.20 on expectations of decreased qtrly growth rate and uptick in net bad debt
** Adds Citi analysis of Zip's August app data shows a pickup in its U.S. customer growth and engagement, with app downloads and sessions growth accelerating
** All 10 analysts rate stock "buy" or higher; median PT is A$4.39, according to data compiled by LSEG
** Zip down 36.2% YTD, as of last close
(Reporting by Subhalakshmi Dey in Bengaluru)
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