Australasian customer growth surpassed rival Afterpay ((APT)) in the first half and UBS expects cash operating earnings to be at breakeven in FY21. UBS downgrades to Sell from Neutral and raises the target to $6.40 from $5.70.
On its earnings release, PayPal noted its new BNPL product has proven to be the fastest launch for the company ever. It's a double-edged sword for locals Afterpay and Zip Co, the broker suggests. Neutral and $6.50 target retained on Zip.
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. Target is $5.70.