Z1P – UBS rates the stock as Neutral

Zip Co has announced a capital raising of up to $150m. Proceeds will be used for the US and UK expansion. UBS believes the company is now well situated for growth strategies in new markets and new products.

Although this is a relatively early-stage investment that is still making a loss, amid significant capital requirements, the broker is confident in management’s strategy. Rating is upgraded to Neutral from Sell, given the recent underperformance of the share price. Target is $5.70.

Sector: Diversified Financials.


Target price is $5.70.Current Price is $5.57. Difference: $0.13 – (brackets indicate current price is over target). If Z1P meets the UBS target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).



About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →