Zip Co will pay an -$11m break fee to terminate the proposed acquisition of Sezzle Inc ((SZL)). In UBS’s opinion, considerable uncertainty remains and the Sell rating and $0.45 target price are unchanged.
The broker’s base case continues to assume losses over the next three years though near term cash burn should improve without Sezzle. It’s thought Zip Co need to be more transparent and regular in updating the market on the path to profitability.
Sector: Diversified Financials.
Target price is $0.45.Current Price is $1.21. Difference: ($0.76) – (brackets indicate current price is over target). If Z1P meets the UBS target it will return approximately -169% (excluding dividends, fees and charges – negative figures indicate an expected loss).
