Is it time to get greedy with Zip shares?

Zip Co Ltd (ASX: ZIP) shares have suffered a tough 12 months. 

The buy now, pay later (BNPL) provider’s shares have swung wildly anywhere between $1.38 and $4.93 per share thanks to strong headwinds and fluctuating investor sentiment.

The ASX tech stock has faced several major headwinds over the past 12 months. 

The falling share price is mostly the result of a sector-wide sell-off of technology stocks. Investors were spooked by concerns about rising competition, slowing growth, and margin compression, and it caused a sharp sell-off through late-2025 and into early-2026.

This was exacerbated further by rising concerns around conflict in the Middle East. In early-2026, many investors rotated away from high-growth technology stocks and towards more stable assets.

A sharp increase in the value of some ASX tech shares in 2025, including Zip, also sparked concerns that tech companies were overvalued and overdue a price correction. 

Where are Zip shares trading now?

At the time of writing, Zip shares are up around 1% and changing hands at $2.53 a piece.

The increase means the shares are now around 24% lower for the year to date and down 41% from 12 months ago.

Are Zip shares too cheap to pass up?

Analysts are incredibly bullish on Zip shares, with widespread anticipation that we’ll see a significant upside over the next 12 months.

Market Index data shows all brokers agree on a strong buy rating, and the $3.95 target price implies around a 58% upside, at the time of writing.

TradingView data shows something similar. All 13 analysts have a buy/strong buy rating on the shares. The average $4.52 target price implies a potential 81% upside ahead, at the time of writing. Although some are confident that Zip shares can climb another 141% to $6.03 over the next 12 months.

UBS recently confirmed its buy rating and $4.70 target price on Zip shares. The broker said that the outlook for the current year was better than expected, providing comfort around the defensive qualities of the buy now, pay later business model through slowing economic times.

The team at Macquarie also agrees. The broker has a buy rating and $3.50 target price on the shares. Macquarie said “Zip’s outlook remains attractive as management executes the market opportunity in the US, supported by performance in AU”.

What is expected to drive the ASX tech shares higher this year?

Zip’s financial results have been strong through the past few quarters. Its latest full-year FY26 results announcement last month shows that growth has continued accelerating. The fintech business posted a huge 57.9% increase in its cash EBTDA. It also reported a 24.7% increase in total revenue, and a 45.7% hike in its NPAT for FY26.

The company also said it expects its cash EBTDA to climb even higher in FY27, by around 26% thanks to strong growth and greater scale across the business.

Zip has undergone a major reset over the past few years. It is now heavily concentrated on product growth and global expansion, especially in the US. It looks like this reset is finally translating to improved revenue and a boost in investor confidence.

Zip is currently pursuing a dual sharemarket listing on the Nasdaq in the US in the hope that it could help drive an even opportunity for business expansion in the area. 

The post Is it time to get greedy with Zip shares? appeared first on The Motley Fool Australia.

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• 3 reasons why the Zip share price could be a great buy

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.