Zip Co Ltd (ASX: ZIP) shares are climbing higher into the green in Tuesday's trade.
At the time of writing, the buy now, pay later (BNPL) provider's shares are up around 1% and changing hands at $2.85 a piece. At one point this morning, Zip shares climbed as high as $2.92 a piece.
The latest increase means the shares are up around 28% over the past month and have now rebounded an impressive 96% since hitting an annual low in March.
Zip shares still have a way to go before they've recouped the losses shed this year, though. Even after the latest rebound, the shares are still down around 16% for the year to date but 7% higher than 12 months ago.
For context, the S&P/ASX 200 Index (ASX: XJO) is around 0.4% lower on Tuesday and around 2% higher year to date.
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Why is everyone buying back into Zip shares?
There hasn't been any recent price-sensitive news out of Zip to explain the increase over the past month.
I think the rebound shows that investors are finally buying back into the growth potential for the ASX 200 tech stock.
Zip's financial results have been robust over the past few quarters. Its latest third-quarter FY26 results announcement in mid-April showed that growth has finally started to accelerate.
The company reported a 22.4% year-on-year increase in its total translation volume (TTV) and confirmed a 20.2% increase in total income, a higher operating margin of 19.4%, and 3.5% growth of its active customer base.
Zip also upgraded its FY26 group cash EBTDA guidance to at least $260 million, up from previous guidance of around $248.6 million.
The company has been through a major reset over the past few years and is now heavily concentrated on product growth and global expansion, especially in the US. Zip is also pursuing a dual sharemarket listing on the Nasdaq in the US. This could help drive an even opportunity for business expansion in the area.
Late last year, the company also announced that its US segment was expanding its partnership with the programmable financial services business Stripe, a move that caused some investor panic at the time.
In early February, the company confirmed it is expanding its US presence by launching a new Pay in 2 product.
What are analysts tipping for the ASX 200 tech stock now?
Market Index data shows that brokers are extremely bullish on Zip's outlook over the next 12 months. All six brokers have a strong buy rating and tip an upside of around 36% to an average target price of $ 3.86 at the time of writing.
TradingView data shows something similar. Out of 12 analysts, 11 have a buy or strong buy rating on the shares. The average target price is $3.82, which implies an upside of around 35% at the time of writing. But some are much more bullish and think Zip shares could climb 91% to $5.40 a piece over the next 12 months.
