Business · Markets · 2 hrs ago
Zip shares rise 14% as investors weigh growth and credit risks
Zip Co shares rose about 14% to around $2.12 on Thursday as Australia's share market rallied.
Zip is an Australian buy now, pay later company, and its shares have been volatile recently.
Analysts expect Zip's earnings to grow about 19% a year from FY27 to FY29, according to CommSec consensus forecasts.
At Thursday's price, the article's author considers the shares inexpensive compared with those forecasts, though the estimates are not guaranteed.
Zip maintained its FY27 guidance of $340 million in group cash earnings before tax, depreciation and amortisation, despite a recent US fraud incident that disrupted operations and raised questions about risk controls.
Rising credit losses and a weak economy remain risks because they could affect Zip's growth and customers' ability to repay.
The company will need to show it can control credit losses as it expands, while the author believes improved consumer finances could help its business.
Zip shares climbed 14% to around $2.12 on Thursday as the Australian share market rose.
The buy now, pay later company has faced recent volatility and concerns about credit losses and risk controls.
Motley Fool AU says analysts expect Zip's earnings to grow by about 19% annually between FY27 and FY29.
Zip maintained its FY27 guidance for $340 million in group cash earnings before tax, depreciation and amortisation.
The article's author sees the shares as inexpensive but says Zip must control credit losses and deliver on earnings forecasts.
- Who
- Zip Co Ltd, an Australian buy now, pay later provider.
- What
- Its shares rose 14%, reaching around $2.12.
- When
- Thursday, according to the article published on 5 November 2026.
- Where
- On the Australian share market.
- Why
- The shares climbed as the broader market surged. The article cites investor reactions to the US midterm election outcome and falling oil prices as factors in the market rally.
This story does not have two clearly opposing sides.
Zip's credit losses increased.
Zip maintained its FY27 guidance for $340 million in group cash earnings before tax, depreciation and amortisation.
Zip shares climbed to around $2.12 as the Australian share market surged.
- Share-price rise
- 14%
- Share price
- Around $2.12
- FY27 guidance
- $340 million in group cash earnings before tax, depreciation and amortisation
- Forecast earnings per share
- 14.7 cents in FY27, 16 cents in FY28 and 20.9 cents in FY29
- Forecast annual earnings growth
- Approximately 19% from FY27 to FY29
What people are saying
I'd be happy to buy at current levels and give the company several years to demonstrate what it can achieve.
Lower oil prices could eventually translate into cheaper petrol, helping consumers keep more money in their pockets.