Shares in Zip Co Ltd (ASX: ZIP) surged more than 18% on Thursday after the company reported its full-year results, begging the question, are the shares now fully priced?

While the shares jumped significantly on Thursday, they are 9.3% lower over a 12-month period after pulling back 7.2% on Friday morning to $2.83.

The analysts at Macquarie have had a look at the results and have come up with an outperform rating on the stock, and a bullish share price target which I’ll get to shortly.

The team at UBS are also bullish on the company.

Before we get to what the analysts are saying, let’s look at what Zip announced this week.

Large jump in earnings underpinned Zip share price surge

The buy now, pay later service provider on Thursday announced record cash EBTDA of $268.9 million, up 57.9% on the previous year.

Total transaction volume (TTV) grew to $16.7 billion, up 27.2%, while the number of merchants on Zip’s platforms increased 13.8%.

Zip Chief Executive Officer, Cynthia Scott, said regarding the result:

Consistent execution has built the platform to deliver our next phase of growth and innovation. In FY26, we exceeded our targets with record cash earnings of $268.9m, up 57.9%, underpinned by material cash earnings growth in both markets. We maintained strong unit economics, expanded operating leverage and reinforced the value of our differentiated business model. Our focus on exceptional customer experiences is translating into stronger engagement. In the US, we achieved more than 40% growth in both TTV and revenue for a second consecutive year while adding new customers at scale. In ANZ, we returned to revenue and Australian receivables growth, led by the continued success of our Zip Plus product.

Ms Scott said Zip was targeting cash earnings of $340 million in FY27, which would be a 26% increase.

Brokers like the look of Zip shares

UBS said in its note to clients 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.

UBS said:

Whilst macro remains key uncertainty into FY27, we have increased confidence around Zip’s defensive quality and ability to drive customer growth and transaction frequency. Our US TTV growth forecast of +30% in FY27 is comprised of 9% customer growth and 19% TTV/customer growth, which we view achievable.

UBS has a price target on ZIP shares of $4.70.

Macquarie said “Zip’s outlook remains attractive as management executes the market opportunity in the US, supported by performance in AU”.

Macquarie has a price target of $3.50 on Zip shares.

Zip is valued at $3.8 billion.

The post How high do UBS and Macquarie think Zip shares will go? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

The Bitcoin (CRYPTO: BTC) price has been on fire this week.

The world’s first and biggest crypto by market cap really took off on Wednesday.

It’s currently trading for US$73,307, up 15.6% since this time last week, according to data from CoinMarketCap.

While BTC remains down 42% from the all-time high of US$126,198 it reached on 7 October last year, this week’s rally will certainly come as welcome news to crypto investors awaiting a rebound.

So, what’s driving the strong gains?

What’s boosting the Bitcoin price?

Last month, the Bitcoin price briefly caught some tailwinds after United States Treasury Secretary Scott Bessent said that the US’ crypto regulating Clarity Act looked set to get the green light from Congress.

The Clarity Act is intended to give the SEC and the CFTC departments oversight into crypto trading. If passed, it could fully open the door to trading in cryptos like Bitcoin and Ethereum (CRYPTO: ETH) in US stock markets.

However, with the Clarity Act now stalled in Congress, those tailwinds have faded.

But crypto investors still have Bessent to thank for the big boost in the Bitcoin price this week. Not to mention the Ethereum price, which at US$2,345, is up 24.6% since last Friday. The world’s number two crypto by market cap hit its own all-time high of US$4,954 on 25 August 2025.

On Wednesday, Bessent announced the US Treasury Department will at least double the amount of longer-dated treasuries it plans to buy back to address surging bond yields. He said this “could be more than the $4 billion” size the administration initially planned.

While yields have yet to sustainably fall, the Bitcoin price took off on the hopes that the decades’ high borrowing costs in the world’s top economy may come off the boil.

And with US government debt topping US$40 trillion this week, the debasement trade – where investors buy assets like gold or crypto as a hedge against a decaying greenback – appears to be back on.

“The market read this as a quiet form of quantitative easing, a move that weakens the dollar and sends scarce, debasement-hedge assets like Bitcoin higher,” Matt Mena, senior strategist at 21Shares, said (quoted by Fortune).

Looking to what may be ahead for the Bitcoin price, Zach Pandl, Grayscale’s head of research, speculated:

Our best guess is that Bitcoin potentially bottomed at $58,000 earlier this summer… and [that] it’s a compelling time for investors with longer-term horizons to be allocating to Bitcoin and the crypto asset class.

The post Why is the Bitcoin price rocketing 16% this week? appeared first on The Motley Fool Australia.

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• ASX shares or crypto? Here are the benefits and risks of each
• What could spark a Bitcoin price rebound in 2026?
• Down 48%, why a Bitcoin price rebound may be off the cards
• Could US lawmakers drive a rebound in the beaten-down Bitcoin price?

Motley Fool contributor Bernd Struben 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 Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking for some new portfolio additions?

Well, it could pay to hear what Morgans is saying about the popular ASX shares in this article. Are they buys, holds, or sells? Here’s what you need to know:

Fortescue Ltd (ASX: FMG)

Morgans notes that this iron ore giant delivered a mixed FY 2026 result with flat earnings.

In light of this, the broker has retained its hold rating with a reduced price target of $18.70. It said:

A mixed FY26 result from FMG, with higher revenue helping to offset cost increases and elevated admin/R&D to help keep underlying earnings flat. With the focus on FY27 guidance, Iron Bridge remained a key issue, with the magnetite operation struggling through ramp up and with elevated costs. Plans for a green steel plant was big news, although difficult to quantify. We maintain a HOLD rating, with an A$18.70 target price (was A$21.80).

Megaport Ltd (ASX: MP1)

The broker was impressed with this network-as-a-service company’s results and guidance for FY 2027.

In response, the broker has upgraded Megaport shares to a buy rating with a $25.00 price target. It commented:

MP1’s FY26 underlying EBITDA and FY27 EBITDA guidance were above market expectations. Both Network and Compute delivered record growth. At first glance, simple maths suggests MP1’s funding position looks tight. However, there is nearly $500m of additional funding that got lost in translation. We think MP1 ends FY27 with nearly $600m of surplus liquidity (assuming no new deals get signed). 

Deals already contracted deliver $620m of annualised contracted EBITDA which means after EBITDA lifts 3x YoY in FY27, it will more than double into FY28, based on deals already signed. We upgrade to a Buy recommendation and $25 target price.

Northern Star Resources Ltd (ASX: NST)

Finally, following the release of an FY 2026 result that was in line with expectations, Morgans has downgraded this gold miner’s shares to a hold rating with a $25.00 price target. 

Commenting on the downgrade, Morgans said:

FY26 result was in line with a 30cps final dividend beating both MorgansF and consensus, while FY27 guidance met expectations at the headline level despite KCGM ramp-up risk. Move to a HOLD (previously ACCUMULATE) with a A$25ps target price. We expect the near-term valuation discount to persist until operating & strategic clarity improves post KCGM ramp-up and new CEO beginning in October.

The post Buy, hold, sell: Fortescue, Northern Star, and Megaport shares appeared first on The Motley Fool Australia.

More reading

• Are Fortescue shares in the buy zone after its results?
• 10 ASX 200 shares downgraded by analysts this week
• Everything you need to know about the new Fortescue dividend
• Why Megaport, Northern Star and Zip shares are turning heads on Thursday
• Why is the Fortescue share price on a rollercoaster today?

Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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 Scott Phillips.