The Zip Co Ltd (ASX: ZIP) share price was well and truly back on form during the first quarter of the 2023 financial year.
From the end of June through to the end of September, the buy now pay later (BNPL) provider's shares rose a massive 57%.
That was despite the Zip share price having an utterly terrible time last month, slumping a sizeable 28% amid the tech selloff.
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Why did the Zip share price race higher during the quarter?
The strong performance by the Zip share price during the first quarter appears to have been driven by bargain hunters swooping in on the belief that BNPL shares had been oversold.
For the same reason, the Openpay Group Ltd (ASX: OPY) share price rose 50% and the Sezzle Inc (ASX: SZL) share price rose 80% over the same period.
In addition, at the very start of the quarter, Zip announced that it was abandoning its merger with Sezzle. This is expected to help with its aim of reducing its cost base and helping it achieve its profitability targets.
Where next for its shares?
Opinion remains incredibly divided on where the Zip share price is heading from here.
For example, UBS has a sell rating and 45 cents price target on its shares. This implies potential downside of 34% for investors over the next 12 months from current levels.
Whereas over at Ord Minnett, its analysts have an accumulate $1.10 price target on Zip's shares. This suggests that its shares could have potential upside of almost 60% for investors between now and this time next year.
Time will tell which broker makes the right call.
