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.