Morningstar sees fee hikes to impact transaction volumes for Australia's Zip

Zip Co

30/10/2023 19:47

** Analysts at Morningstar sees transaction volumes of Zip
Co  ZIP.AX  to be adversely affected as the group continues to
implement fee increases to bolster profitability 
    ** Brokerage trims their fair value estimate for the
financial services provider by 5% to A$0.40/shr 
    ** Slower volume growth likely to more than offset gains
from higher fees, hindering pathway for Zip to be profitable in
next 5 years - Morningstar
    ** Brokerage says there is risk of customer attrition in the
 U.S. BNPL market, where Zip is a relatively late entrant 
    ** One of seven analysts rate the stock "strong buy", five
"hold" and one "strong sell" ; their median PT is A$0.46 - LSEG
data
    ** ZIP down 42.2% YTD as of last close 
   

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))