Zip Co Analyst Price Target Raised to $5.00 on Upgraded Profitability Outlook
Analysts have increased their fair value estimate for Zip Co from $4.58 to $5.00. The revision is based on stronger expected revenue growth and improved profit margins in their updated projections.
What's in the News
- Zip Co announced a partnership with Opportunity Knocks, offering customers nationwide the chance to use digital tools and participate in a casting call for financial support up to $20,000. Customers will also have ongoing access to resources for housing, healthcare, job training, and legal aid (Company Announcement).
- The company completed a buyback of 14.8 million shares, representing 1.13% of total shares, for AUD 29.8 million between April and June 2025 (Buyback Update).
- Zip Co expanded its integration with Google Pay, enabling US shoppers to use Zip's payment options directly via Chrome's autofill feature. This provides simplified installment payments and a more seamless checkout experience (Company Announcement).
Valuation Changes
- Consensus Analyst Price Target has risen from A$4.58 to A$5.00, reflecting a more optimistic outlook.
- Discount Rate has fallen slightly from 8.24% to 8.19%, indicating a marginally lower perceived risk.
- Revenue Growth forecast has increased from 17.44% to 18.31%, which points to stronger expected expansion.
- Net Profit Margin has improved from 12.51% to 13.10%, suggesting better profitability forecasts.
- Future P/E ratio has moved up from 33.49x to 34.11x, which shows a slight change in forward earnings expectations.
Disclaimer
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