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Investing.com - Jefferies has upgraded Zip Co Ltd (ASX:ZIP) (OTC:ZIZTF) stock rating from Underperform to Buy, while more than doubling its price target to AUD4.40 from AUD2.10.
The upgrade comes after Zip reported stronger-than-expected fourth-quarter US customer growth and fiscal year 2026 US Total (EPA:TTEF) Transaction (JO:NTUJ) Value (TTV) guidance.
Jefferies noted that Zip’s management has indicated that fiscal year 2025 momentum has continued into fiscal year 2026, with the firm’s High-Frequency Data (HFD) tracking supporting this positive outlook.
The research firm specifically dismissed concerns from its proprietary survey conducted in May, stating that three months of data has not shown the weaker six-month forward outlook that the survey had suggested.
Zip Co, an Australian buy-now-pay-later service provider, has seen its business prospects improve significantly according to Jefferies’ revised outlook, particularly in the crucial US market.
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