Zip Bull Sees Positives Despite Earnings Miss -- Market Talk

Dow Jones
2025/01/30

2331 GMT - Zip remains well-positioned for the remainder of its fiscal 2025 despite the Australian installment-payment provider's disappointing 2Q earnings, RBC Capital Markets analyst Jack Lynch reckons. While he thinks that softer Australia and New Zealand revenue yields in the December quarter will overshadow a strong U.S. performance in investors' minds, Lynch still sees plenty to be positive about. In a note to clients, he highlights strong growth in the value of U.S. transactions, a resumption in U.S. customer growth, an on target cash transaction margin, and a strong balance sheet. RBC has an outperform rating and A$3.60 target price on the stock, which is down 19% at A$2.65. (stuart.condie@wsj.com)

 

(END) Dow Jones Newswires

January 29, 2025 18:32 ET (23:32 GMT)

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