The Zip Co Ltd (ASX: ZIP) share price is having another positive session.
In morning trade, the buy now pay later (BNPL) provider's shares are up almost 8% to $1.26.
This latest gain means that Zip's shares are now up 58% in the space of almost a week.
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Why is the Zip share price taking off?
Investors have been scrambling to buy the company's shares since the day after the release of its results last week.
As reminder, Zip reported a 28.9% increase in revenue to $430 million and group cash EBTDA of $30.8 million. The latter was up from negative $33.2 million a year earlier.
The initial market reaction to the results was poor, with the Zip share price tumbling deep into the red on the day. But from the following day, its shares have not looked back.
This may have been driven partly by a broker note out of Ord Minnett, which praised the result and labelled Zip's shares as a buy with an improved price target of $1.08.
What about today's gain?
Today's gain appears to have been driven by an even more bullish broker.
According to a note out of UBS, its analysts have upgraded the company's shares to a buy rating and lifted their price target to $1.43 from a lowly 36 cents.
Based on the current Zip share price, this implies potential upside of almost 14% for investors.
UBS has been impressed with Zip's improving profitability and user growth in the key United States market. Particularly given that the latter has been achieved while keeping its bad debts below its target rate.
And with the broker believing that margins can improve from cost control efforts and new product launches, it is feeling very positive on the company's outlook.
