The Zip Co Ltd (ASX: Z1P) share price is pushing higher on Tuesday morning following the release of a positive announcement.
At the time of writing, the buy now pay later provider’s shares are up 1.5% to $5.35.
What did Zip Co announce?
Investors have been buying Zip Co’s shares this morning after it announced a partnership with one of Australia’s largest retailers.
According to the release, the company has entered into a partnership with the franchisees of Harvey Norman Holdings Limited (ASX: HVN) and its subsidiaries Domayne and Joyce Mayne.
The partnership will see the retailers offer their customers the ability to pay with Zip’s BNPL payment solutions.
Zip’s Co-Founder and Chief Operations Officer, Peter Gray, was pleased with the partnership.
He said: “We are thrilled to partner with such iconic brands. We look forward to providing customers with additional choice and better ways to pay as they ‘Shop with Confidence’ at Harvey Norman, Domayne, and Joyce Mayne.”
Management also notes that the partnership with Harvey Norman continues to deliver on the company’s strategic vision of providing customers with convenience and choice in how they choose to pay.
Furthermore, it supports Zip’s bold mission to be the first payment choice everywhere and every day.
Where now for the Zip share price?
Despite today’s gain, the Zip share price is still down ~50% from its 52-week high of $10.64.
This underperformance has been driven by concerns over increasing competition in the US buy now pay later market following launches by PayPal and Shopify. There is also speculation that the company may need to raise capital in the near future, which is adding to the negative sentiment.
Nevertheless, a recent broker note out of Ord Minnett reveals that its analysts believe this share price weakness is a buying opportunity. Earlier this month the broker put an accumulate rating and $6.50 price target on its shares.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Zip (ASX:Z1P) share price rises on Harvey Norman (ASX:HVN) partnership appeared first on The Motley Fool Australia.
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