Z1P – Citi rates the stock as Neutral

On its earnings release, PayPal noted its new BNPL product has proven to be the fastest launch for the company ever. Rival Klarna highlighted 15m customers, up 4m from November.

It’s a double-edged sword for locals Afterpay and Zip Co, the broker suggests. On the one hand it underscores a large addressable market offering growth, but on the other hand competition, particularly from a big player like PayPal.

The broker sees Zip as relatiely more exposed given a lack of scale relative to Afterpay. Neutral and $6.50 target retained on Zip.

Sector: Diversified Financials.


Target price is $6.50.Current Price is $8.04. Difference: ($1.54) – (brackets indicate current price is over target). If Z1P meets the Citi target it will return approximately -24% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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