Payments Provider Zip Could be About to Re-rate

Dow Jones
07/03

0128 GMT - With shares of its U.S.-listed peers rising, Australian payments provider Zip could be set for a re-rate, according to its bull at Unified Capital Partners. Analyst Jonathan Higgins reckons that Zip is now the cheapest of the so-called buy-now-pay-later providers and has the potential to rally materially. He tells clients in a note that ASX-listed Zip is trading at about 10 times annual cash earnings, compared to an average multiple of close to 20 across peers including Sezzle and Affirm. With Zip's earnings increasingly skewed to the U.S. and its total-transaction-value yields similar to those at Affirm, Higgins sees no reason why the stock shouldn't re-rate soon. Unified has a buy rating on the stock and a target price of 4.85 Australian dollars. Shares are up 1.8% at A$3.145. (stuart.condie@wsj.com)

 

(END) Dow Jones Newswires

July 02, 2026 21:28 ET (01:28 GMT)

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