Ann: Investor Presentation for Laybuy Webinar, page-26

Bell Potter rates LBY as a BUY - 85c price target

Early issues with the Laybuy App Exclusives program saw Laybuy Group Holdings identify increased instances of fraud among new retailers, which Bell Potter notes drove an increase in its second quarter default rate to 3.0% of gross merchandise value, from 2.2%.

Despite this, the company reported 60% year-on-year growth in the first half in gross merchandise value, customers and revenue. Commentary pointed to being on track for full-year gross merchandise value of NZ$1.0bn, implying second half improvement.

The Buy rating is retained and the target price decreases to $0.85 from $1.20.

This report was published on November 25, 2021.