UBS analyst Lucy Huang stays bearish on Zip Co. despite the Australian buy-now, pay-later operator delivering on promises to cut cash burn. Huang views Zip exiting non-core markets and its increased efficiency as positives, but remains cautious on the medium-term outlook given macro uncertainty in the U.S. and Australia. Soft macro conditions could limit Zip's ability to grow the value of transactions on its platform while controlling bad debts. She also worries about the impact of higher interest rates on funding. UBS cuts the stock's target price 20% to A$0.36 and maintains a sell rating. Shares are down 1.45% at A$0.34.
*Zip Price Target Cut 22% to A$0.38/Share by Jefferies
ZIP Price at posting:
31.3¢ Sentiment: None Disclosure: Not Held
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