Australia's Zip advances as Macquarie initiates coverage at premium

Zip Co

27/10/2025 04:42

** Shares of Zip Co ZIP.AX rise as much as 6.1% to A$4.21, their highest level since October 22

** Stock logs largest intraday pct gain since October 20

** Zip is a buy-now-pay-later provider with services in Australia, New Zealand, the U.S. and Canada

** Macquarie initiates coverage with "outperform" rating and target price A$4.85, representing a 22.2% premium to stock's last close

** Brokerage says stock represents an attractive opportunity as co delivers rapid total transaction volume growth and expands operating leverage with growing customer base and continued product innovation

** Adds co's investment appeal is driven by its U.S. segment growth, currently outpacing peers with a significant opportunity to acquire new customers in an underserved market

** Stock up 38.9% YTD, including the day's moves

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))