Zip Co Ltd's stock soared 9.87% during intraday trading on Monday, following a significant positive update from analysts.
The surge comes after Macquarie, a bullish analyst on the stock, upgraded its earnings forecasts for Zip Co. The upgrade is supported by the Australian payment provider's strong March-quarter performance, which demonstrated an ability to balance top-line growth in the U.S. with tight credit-quality control. Notably, U.S. net bad debts are trending lower, with losses from its eight-installment payment product having peaked. Additionally, Zip is positioned to refinance its US$300 million U.S. facility in the June quarter, which is expected to further optimize its portfolio. Macquarie raised its target price by 1.5% to A$3.40 and maintained an outperform rating on the stock.