Citi hikes PT, earnings view on Aussie BNPL Zip after strong US growth

Zip Co

06/12/2023 19:23

** Citi hikes price target on Australian buy-now-pay-later
firm Zip  ZIP.AX  to A$0.51 from A$0.46, retains "neutral"
rating
    ** Brokerage hikes its earnings view through to FY25 on
acceleration in U.S. revenue growth while keeping loss-rate
below target range
    ** As Zip hit profitability earlier than expected (1Q was
cash EBTDA positive), Citi upgrades its FY24 cash EBTDA forecast
to A$17 mln ($11.16 mln) from A$6 mln
    ** Hikes FY25 cash EBTDA expectation by 30% to A$31 mln
    ** Brokerage expects ZIP to be cash flow positive in 2H24
    ** One of six analysts rate the stock "buy" or higher, four
"hold" and one "sell" or lower; their median PT is A$0.46 – LSEG
data
    ** As of last close, ZIP had lost 17.7% this year


($1 = 1.5239 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))