Update shared on 05 Dec 2025
Analysts have modestly lifted their price target on Zip Co, citing a slightly higher discount rate and steady expectations for revenue growth, profit margins, and future valuation multiples that together support a fair value estimate of approximately $5.10 per share.
What's in the News
- Expanded US partnership with Stripe enables Zip as a pay in installments option across Stripe Elements, Checkout, and Payment Links, with no code required for merchants and full upfront payment while Zip manages customer repayments (company announcement)
- Stripe integration gives merchants access to a broader base of high intent shoppers who may be underserved by traditional financial services, aiming to lift conversion and average order values while reducing cart abandonment (company announcement)
- New collaboration with Opportunity Knocks launches a national casting call where selected participants, including one Zip customer, can receive up to $20,000 in targeted support to accelerate their path to financial stability (company announcement)
- Opportunity Knocks partnership extends Zip's financial wellness focus by directing customers and viewers to free digital tools like the Opportunity Coach and Opportunity Finder, connecting them to over 17,000 local support services (company announcement)
Valuation Changes
- Fair Value Estimate remains unchanged at approximately A$5.10 per share, indicating no material reassessment of intrinsic value.
- The Discount Rate has risen slightly from 8.59 percent to 8.72 percent, reflecting a modest increase in the required return.
- Revenue Growth is effectively unchanged at around 20.31 percent, signaling stable expectations for top line expansion.
- Net Profit Margin is effectively unchanged at approximately 12.61 percent, suggesting consistent long term profitability assumptions.
- The Future P E Multiple has risen slightly from 34.7x to 34.8x, indicating a marginally higher assumed valuation for future earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.