Australasian customer growth surpassed rival Afterpay ((APT)) in the first half and UBS expects cash operating earnings to be at breakeven in FY21.
The broker remains positive about the short-term growth profile but envisages significant execution risks while capital requirements will continue to increase.
Higher bond rates may also affect the cost of funding and valuation. UBS downgrades to Sell from Neutral on valuation grounds and raises the target to $6.40 from $5.70.
Sector: Diversified Financials.
Target price is $6.40.Current Price is $8.78. Difference: ($2.38) – (brackets indicate current price is over target). If Z1P meets the UBS target it will return approximately -37% (excluding dividends, fees and charges – negative figures indicate an expected loss).
