I just found this from nabtrade, part of copied and pasted...for...

I just found this from nabtrade, part of copied and pasted...for full article go to https://www.nabtrade.com.au/investor/insights/latest-news/news/2020/08/the_question_on_ever
IMO, 100% agree about his conclusion, there is only one way for Z1P...speculating....
IMO we start to see more of those article...Z1P or After Pay.....we are often in front...waiting game, I keep my position....

One important difference between the models is that Afterpay doesn’t do a credit check on its customers, whereas Klarna and fellow competitor Zip (ASX: Z1P) do. Some industry commentators argue that under the guise of ‘responsible lending’, it is inevitable that the regulator ASIC requires this to happen and say that Afterpay’s failure to do so will come back to haunt it.

Zip’s operating model is more akin to the provision of a line of credit. Although no interest is charged with Zip Pay, a monthly account fee of $6 is levied on the customer for so long as there is a balance outstanding. Up to a credit limit of $1,000, the monthly instalment is $40 per month. For purchases (limits) over $1,000, Zip offers Zip Money (which potentially charges interest after 3 months). Because Zip’s transaction size is higher on average than Afterpay and the customer is also paying a fee, merchant fees (as a percentage of the transaction value) are lower.

After bottoming at $8.90 on March 23, Afterpay has soared to over $70. A key catalyst was news that Chinese tech giant Tencent had acquired a 5% interest in the company. A very well supported capital raising at $66 per share in July, which raised $650m, has provided a temporary floor.

– Aug 19 to July 20Zip, which has a market cap of around $2.3bn, has also experienced a rapid climb since its March lows. The all scrip acquisition of US buy now, pay later provider QuadPay in early June was a strong catalyst. Zip Co (Z1P) – Aug 19 to July 20What do the brokers say?In the main, the brokers see Afterpay as fully priced. There is, however, a huge divergence in opinion, with UBS the “bear” with a target price of just $27.00, while Morgan Stanley is the “bull with a target price of $101.00. According to FN Arena, the consensus target price is $67.92, a 0.9% discount to Friday’s closing price of $68.54. Individual broker recommendations and target prices are shown in the table below.

– Broker Recommendations and Target PricesFewer brokers cover Zip, but the three majors who do are collectively more bullish on Zip than they are on Afterpay. Overall, the consensus target price is $6.45, an 8.4% premium to the closing price on Friday of $5.95.

Zip (Z1P) – Broker Recommendations and Target Prices

Bottom lineI will stick my neck out and call Afterpay a “sell”.On “value” grounds, Zip looks a better bet. However, I am wary of recommending the “number two” in a market place and if Afterpay heads south, I can’t see Zip heading in the other direction.

Share Paul Rickard is one of Australia’s leading business and financial commentators, launching his own business 20 years ago. All prices and analysis at 3 August 2020. This information was produced by Switzer Financial Group Pty Ltd (ABN 24 112 294 649), which is an Australian Financial Services Licensee (Licence No. 286 531This material is intended to provide general advice only. It has been prepared without having regard to or taking into account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. This article does not reflect the views of WealthHub Securities Limited.