Jefferies increases PT for Australia's Zip on better US prospects

Zip Co

20/10/2025 20:40

** Analysts at Jefferies forecast U.S. customer growth to exceed historical highs by mid-FY26 for Australia's Zip Co ZIP.AX

** Brokerage increases price target to A$5/shr from A$4.40/shr; downgrades rating to "hold" from "buy"

** On relative basis, ZIP no longer looks materially more attractive on multiple valuations relative to U.S. listed peers in our view, Jefferies says

** Adds that co's ability to breach new customer highs in coming quarter will "undoubtedly" be taken positively

** Increased competition may put pressure on ZIP to reduce its revenue margin, but fees from consumers can offset this margin pressure, brokerage says

** Stock up 55.7% YTD, as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)

 ((shivangi.lahiri@thomsonreuters.com))