“Buy now play later” (BNPL) high flyer Zip Co has now more than doubled in less than 5-weeks, its 4.6% short position must be getting extremely uncomfortable. We’ve discussed previously how “cheap” we felt Z1P was from a comparative valuation perspective with say heavyweight Afterpay (APT), before even considering the US new comers, while this has clearly now been addressed to a certain degree with the stock now trading on a market capitalization of $7bn. We have flagged a $15 target however momentum is key in this stock and we’re inclined to trim as opposed to sell the stock if/when it trades above that level.
MM remains bullish Z1P with an initial target ~$15
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