Citi says Zip has addressed fraud issue, notes stronger transaction growth

Zip

25/10/2026 20:26

** Citi said Zip Co ZIP.AX has addressed a coordinated fraud issue that weighed on Q1 performance and noted accelerated transaction volume growth in September
** Says total transaction value growth improved to 41% y/y  in September from about 30% growth in July and August, with momentum continuing into October
** Notes tighter risk settings implemented to combat fraud affected both existing customer spending and new customer sign-ups
** Says the A$10 million increase in bad debts reflected a coordinated fraud ring using valid customer credentials rather than a deterioration in US consumer health
** Expects co's guidance to be supported by stronger US transaction growth, solid ANZ performance and cost flexibility
** Citi maintains a "buy" rating and an unchanged A$3.30 target price 
** YTD, stock down 55.6%, as of last close

 (Reporting by Paridhi Minda in Bengaluru; Editing by Chris Reese)
 ((Paridhi.minda@thomsonreuters.com;))