ZIP TO BOUNCE!!!!, page-164

Yep time to bounce before the speculated foreign buyer gives us an offer in the next few weeks. I will be happy if it's a merger with either Paypal or Affirm



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Citi rates Z1P as Neutral - PRICE TARGET $3.65

-While Citi sees the Sezzle ((SZL)) merger as an expensive customer acquisition strategy, there's a high probability on the mooted cost synergies being delivered. The broker points out little detail was provided on the use of proceeds from the capital raise and the growth trajectory in the 2H. The Neutral rating and $3.65 target remain.



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Morgans rates Z1P as Add - PRICE TARGET $3.94

-Following a disappointing 1H result, Morgans makes significant downgrades to FY22 and FY23 EPS estimates of more than -50% and lowers its target price to $3.94 from $7.54. The merger with Sezzle ((SZL)) and capital raise are also factored-in. The broker sees the logic for revenue synergies in the merger. However, its thought the market may be low on trust after the 1H result and now that the date for becoming earnings (EBTDA) positive has been pushed out by the merger until FY24. In conjuction with the scrip deal (valuing Sezzle at $491m), a $149m institutional placement and $50m share purchase plan at $1.90 per share has been launched.

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Ord Minnett rates Z1P as Accumulate - PRICE TARGET $6
-Zip Co has today released H1 financials and announced a merger with Sezzle ((SZL)). The latter transaction has triggered a capital raising of $148.7m via an underwritten institutional placement at $1.90ps, on top of a share purchase plan. In an initial response, Ord Minnett doesn't think Zip is overpaying for Sezzle. The tie-up is seen as a natural response to how the industry is evolving.