The Zip Co Ltd (ASX: Z1P) share price has been hitting 12-month lows over the last 30 days.
Today, the buy now, pay later (BNPL) company’s stock hit yet another 52-week low of $3.66.
At the time of writing, the Zip share price has rebounded to $3.81, representing a 0.2% drop on its previous close.
So, with the Zip share price bottoming out, what do experts predict for its future? Let’s take a look.
What’s going on with the Zip share price?
The last time the market heard price-sensitive news from Zip was on 7 December.
Then, the company announced that, based on its November transaction volume, its bringing in more than $10 billion of transactions per year.
The Zip share price surged 9% that session and another 10% the following session.
However, on 17 December, the BNPL company’s stock hit a 52-week low of $4.05.
Then, on 6 December, it dropped to another low of $3.80. Of course, today’s intraday low was another new 52-week record low.
Thus, some experts are warning investors to hold off from buying Zip shares for the time being. However, brokers’ price targets on the stock remain high.
While both Citi and UBS have a neutral rating on the BNPL company, they’ve respectively slapped it with price targets of $5.85 and $5.20.
Both targets are lower than the brokers’ previous assumptions but they imply an upside of 36% to 53% on the current Zip share price.
The target comes despite Citi predicting the company will post deeper losses for financial year 2022.
As The Motley Fool Australia recently reported, the broker expects the company will end financial year 2022 with a loss of $218 million. For comparison, Zip recorded a $211 million loss last financial year.
Though, Citi is expecting Zip’s losses to improve from financial year 2023.
The broker is also concerned about the growth of Zip’s international presence.
The company rebranded its 2020 acquisition, Quadpay, to become its leg in the North American nation.
Citi has noted that the company’s growth in the United States is slower than expected.
The post The Zip (ASX:Z1P) share price has hit 3 52-week lows in the last month. What now? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended 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.
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