ASX fintechs Block and Zip rebound more than 17% as brokers eye further upside
Two high-profile ASX financial stocks have shaken off a tough patch with sharp gains. Block Inc (ASX: XYZ) and Zip Co Ltd (ASX: ZIP) have each climbed 17% or more over the past month at the time of writing, far ahead of the S&P/ASX 200 Index’s roughly 2% rise over the same period.
Block brings scale and multiple growth avenues. With a market capitalisation around $55 billion, the fintech operates globally through its Square and Cash App platforms, serving merchants and consumers and creating diversified revenue streams. The company has been building a broader financial services ecosystem beyond buy now, pay later, particularly in the United States.
Still, profitability has been uneven, and its performance remains tied to consumer spending trends. Regulatory scrutiny around digital payments and BNPL adds further risk. Even so, analysts remain broadly optimistic. Several brokers continue to rate Block as a buy, citing long-term growth potential and a possible rebound as economic conditions stabilise.
The average 12‑month price target is $163.67, implying about 57% upside from around $97.56 currently. The most bullish forecasts reach $226, suggesting a potential gain of 131%. Zip offers a different, more volatile proposition. The $14 billion ASX financial stock has built a well-known BNPL brand in Australia and is now focused on lifting margins and pursuing profitability.
Its strategy centres on increasing revenue per customer while tightening credit quality. Execution is critical, however, with intense competition, regulatory uncertainty and shifting consumer behaviour still in play. Despite those challenges, broker sentiment is strong.
According to TradingView data, all 11 analysts covering Zip rate the stock a buy or strong buy. Their average price target is $3.83, implying roughly 56% upside from current levels, with the most optimistic at $5.40, pointing to a potential 119% gain over the next year.
The recent rebounds have put both stocks back on investors’ radar, but for different reasons: Block for its scale and diversification, Zip for higher‑risk, higher‑reward potential. If market conditions improve, both could have further room to run. Investors should also expect that volatility is likely to remain part of the picture.