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Where are the Christmas cheers for the Zip (ASX: Z1P) stock price?

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NS Zip Co Ltd (ASX: Z1P) Stock prices have not made a strong start for the festive season.

In the first few days of the month, Zip decreased by more than 6%. Last month, Zip’s share price fell 22%.

In fact, since October 20, 2021, Zip has been steadily declining, down 32%.

What is Zip’s stock price?

After hitting a high of nearly $ 14 earlier this year, it has fallen by more than two-thirds.

The business continues to report growth. Only the seller knows why they are accepting prices much cheaper than earlier this year.

Some brokers have some negative impact on Zip.

for example, Macquarie Group Ltd (ASX: MQG) Analysts point out that growth in both the US and Australia is slowing, and the US may be affected by Zip’s Quadpay-to-Zip rebranding. The three months leading up to December 31, 2021 show continued growth, taking into account important trading periods such as Christmas, Black Friday and Cyber ​​Monday.

UBS recently mentioned Payment system board Comment about buying now, pay extra later. The board said:

The Board also concluded that it is in the public interest for providers to “buy now and pay later” to remove the no-charge rule. This is in line with the Board’s long-standing position on such rules. Given the complexity of regulatory issues, the World Bank will continue to work with the Treasury on its regulatory approach.

Brokers think this is bad for Zip’s stock price.

Recent growth

Despite these negatives, Zip continues to report high levels of growth.

for 3 months until September 2021Quarterly revenue was $ 136.8 million, up 89% year-on-year, backed by trading volume of $ 1.9 billion, up 101% year-on-year.

The number of customers increased by 82% to 8 million, and the number of merchants on the platform increased by 71% to 55,200.

The business continues to pursue international growth through acquisitions. One of its latest moves is the expansion into India by investing in Zest Money.

ZestMoney is currently one of the largest and fastest growing purchases, paying for later platforms in India, with over 11 million registered users, over 10,000 online merchants and physical stores. It exists in 75,000.

Zip also reported that in Australia, delinquency increased from 0.91% on September 30, 2020 to 1.87% on September 30, 2021.

We are aiming to expand not only in India but also in Mexico, Canada and the Middle East.

Is Zip’s stock price good value?

Both Macquarie and UBS rate Zip for sale. However, Zip’s share price has fallen sharply, so the $ 5.70 and $ 5.40 price targets are both more than 10% higher than they are today.

Other broker price targets from different price targets represent high levels of potential growth. For example, Morgan’s target price is $ 8.56, which is more than 70% higher than it is today.

Where are the Christmas cheers for the Zip (ASX: Z1P) stock price?

Source link Where are the Christmas cheers for the Zip (ASX: Z1P) stock price?

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