Z1P managed to rally over 9% yesterday but it continues to languish ~50% below its 2021 peak making it a “high flying” stock which is hurting investors who miss-timed their entry. With APT looking likely to be acquired by Twitters founder Z1P becomes by default Australia’s largest BNPL stock with a market cap of $4b. We continue to believe this company is cheap and if it was valued like APT it would be trading back around its 2021 high, somewhere around $10 feels fair to MM.
The BNPL space is clearly highly prized by a number of successful individuals and businesses alike but first player advantage in the race to the top feels like a “now or never” scenario which makes Z1P attractive to a number of suitors in our opinion including US company Klarna who recently bought ~4% of Z1P or even $23bn Affirm (AARM US) & / or $430bn PayPal (PYPL US) if either decide it’s important to get a fairly “cheap” quick leg up in the space.
MM is bullish Z1P from current levels
Add To Hit List
