Australia's Zip Co rises; Morningstar raises annual outlook on strong quarterly performance

Zip Co

20/04/2026 04:21

** Shares of Australia's Zip Co ZIP.AX rise as much as 11.6% to A$2.6, their highest point since February 18

** Stock is the top gainer in the benchmark S&P/ASX 200 index .AXJO, which is currently flat

** On April 17, the digital financial services company upgraded its fiscal year 2026 forecast for group cash earnings before taxes, depreciation and amortization (EBTDA) to be no less than A$260 million ($186.13 million), also posts strong quarterly earnings

** Morningstar lifts its FY26 EBTDA outlook by 2%

** Says the U.S. buy-now-pay-later market faces low competition, improving U.S. consumer base among others, being headwinds to earnings

** All nine analysts rate stock "buy" or higher; their median PT is A$3.4, LSEG-compiled data shows

** YTD, stock down 21.9%

 (Reporting by Aamir Sheik Khalid in Bengaluru)

 ((Aamir.SheikKhalid@thomsonreuters.com))