Australia's Zip Co rises on upbeat quarterly earnings, annual outlook; brokerages positive

Zip Co

17/04/2026 05:46

Updates

** Shares of Zip Co ZIP.AX rise as much as 23.9% to A$2.54, their highest level since February 18

** Stock among top gainers in the benchmark S&P/ASX 200 index .AXJO, which is down 0.4%

**  The digital financial services company upgrades its full-year 2026 forecast for group cash earnings before taxes, depreciation and amortization (EBTDA) to be no less than A$260 million ($186.13 million)

** Company previously expected 2H26 Group cash EBTDA to be broadly in line with 1H26 Group cash EBTDA of A$124.3 million

** Zip Co posts cash EBTDA of A$65.1 million in 3QFY26, up 41.5% from a year before

** UBS raises price target to A$3.10 from A$2.85, rates stock "buy"; expects net bad debts to remain stable into FY27

** Citi sees potential for ~10% upgrades to Visible Alpha consensus for FY27 cash EBTDA given the momentum in U.S. business; rates stock "buy'

** About 30.5 million shares change hands, 1.1x 30-day average

** Stock down 31.3% this year, including the day's move

($1 = 1.3968 Australian dollars)

 (Reporting by Sherin Sunny and Jasmeen Shaikh in Bengaluru)

 ((Sherin.Sunny@thomsonreuters.com))