BUZZ – Analysts view Australia's Zip equity raising as...

BUZZ – Analysts view Australia's Zip equity raising as positive17 July 2024 3:29 pm* Analysts at Citi see financial services firm Zip Co's equity raising of A$217 mln ($146.17 mln) as "opportunistic"* It makes sense to use the proceeds to retire expensive corporate debt, analysts say* Ord Minnett sees consensus revenue and earnings forecasts to be improved on the back of co's quarterly update and capital raising* Ord Minnett notes that the June quarterly trading update was above its expectations, albeit slightly lower on a revenue margin front* Zip posts total operating revenue of A$223.6 mln for the quarter with a revenue margin of 8.6% vs Ord Minnett estimate of 9%* Citi expects the strong performance in the U.S. to continue as Zip talks to a strong merchant and partner pipeline in the U.S.* Avg rating of seven analysts, including Ord Minnett's, an equivalent of "buy"; their median PT is A$1.40 - LSEG data* Stock has risen 152% this year, as of last close($1 = 1.4846 Australian dollars)