Zip's Bulls Get More Confident on Defensive Characteristics

Dow Jones08-21

0132 GMT - Zip's FY 2027 outlook leaves its bulls at UBS even more confident in the Australian payment provider's ability to maintain U.S. growth in a tough macro environment. With an unchanged buy rating on the stock, analysts Lucy Huang and Ailsa Lei say the better-than-expected guidance increases their comfort on the defensive characteristics of installment-payment offerings. They also like Zip's strong product pipeline, which they think offers potential upside to their U.S. volume forecasts for FY 2028 and 2029. The pair tells clients in a note that the stock's earnings multiple is attractive to both payment peers and Australian banks. UBS raises its target price 15% to 4.70 Australian dollars. Shares are down 8.5% at A$2.79.

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