Zip Co Ltd's stock surged 5.19% during Monday's intraday trading session, marking a significant upward movement for the buy now, pay later provider.

The sharp rise appears to be driven by renewed analyst optimism about the company's prospects. Despite Zip Co's shares being down approximately 55% this year, brokers maintain a highly bullish outlook with an average price target suggesting around 191% upside potential from current levels.

Analysts point to Zip Co's aggressive cost-cutting measures, focus on profitability, and resilient US business as key strengths. The company's improving margins have also contributed to the positive sentiment, with investors responding to the potential for substantial returns if the company executes on its turnaround strategy.