BUZZ-Jefferies cuts PT on Australia's Zip Co, but upgrades to 'buy'

Reuters
02/20
BUZZ-Jefferies cuts PT on Australia's Zip Co, but upgrades to 'buy'

** Jefferies lowers PT on Australia's buy-now, pay-later firm Zip Co ZIP.AX to A$4.20 from A$5, citing higher weighted average cost of capital

** Upgrades stock to 'buy; says 34.4% slump on Thursday was overdone and sees dip as a buying opportunity

** Result reflects evolving U.S. portfolio; but ZIP has control over portfolio composition and has a good handle on unit economics - Jefferies

** Upgrades cash EBTDA forecast by 20% for FY27 and 26% for FY28, citing stronger cash in the next 12 months and increased operating leverage

** 8 analysts rate the stock "buy" or higher; median PT is A$4.88 - data compiled by LSEG

** Stock down 43% YTD, as of last close

(Reporting by Anjali Singh in Bengaluru)

((anjali.singh2@thomsonreuters.com; ))

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