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Zip Co (Z1P) $7.24

Z1P +9.04%: The No 2 BNPL player rallied today on the read through from the Square (SQ US) tilt at Afterpay (APT).  SQ is a massive payments company and a market leader across innovation in the payments space, and the move not only validates the BNPL space with the transaction providing support for all sector participants, it draws a line in the sand around valuation or at least the price a  large suitor is prepared to pay.

If someone was to buy Z1P’s international business at an equivalent multiple it would be worth ~$9bn, or $15 per share. Worth remembering that Klarna has just bought ~4% of Z1P and despite the rising competition in the space, Z1P remains materially undervalued in a consolidating market.

ZIP
We have now turned bullish on Z1P given corporate appeal & valuation support
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Zip Co (Z1P)
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