Zip's Growth and Quality Balance Impresses Bull

Dow Jones
08/20

0036 GMT - Zip's bull at Jefferies is impressed with how the Australian installment-payment provider balanced growth with credit quality over its last fiscal year. Analyst Evan Karatzas flags the continued sequential improvement in U.S. bad debts as a highlight of Zip's latest result, with the company beating its own target in the June quarter. He tells clients in a note that Zip's guidance for U.S. volume growth is probably in line with consensus once currency moves are included. Jefferies has a buy rating on the stock and a last-published target price of 3.80 Australian dollars. Shares are up 17% at A$3.015.

 

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