Positives about Zip shares
The company certainly looks cheaper after its sell-off from several months ago, but the overall numbers continue to be very positive.
In the FY25 third quarter, cash operating profit (EBTDA) surged 219.4% year over year, total transaction value (TTV) increased 35.7% to $3.3 billion, total income increased 26.5% to $278.9 million, the net bad debts improved to 1.6% of TTV (from 1.7% a year ago) and active customers increased 4.2% to 6.3 million.
The broker UBS is forecasting that Zip could grow earnings at a compound annual growth rate (CAGR) of 30% between FY25 to FY27 and it thinks the macroeconomic risks are "largely priced in at these levels".
UBS currently has a buy rating on Zip shares, with a price target of $3.20. A price target is where the broker thinks the Zip share price could be in a year from the time of the investment call. That price target suggests a potential rise of 62% from its current level.
According to the broker's forecast, the Zip share price is valued at 60x FY26's estimated earnings and 14x FY29's estimated earnings.
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Last
$2.71 |
Change
-0.050(1.81%) |
Mkt cap ! $3.507B | |||
| Open | High | Low | Value | Volume |
| $2.78 | $2.81 | $2.71 | $31.87M | 11.55M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 12 | 161713 | $2.71 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.72 | 4164 | 2 |
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| Last trade - 16.10pm 19/06/2025 (20 minute delay) ? |
| ZIP (ASX) Chart |