The Zip Co Ltd (ASX: Z1P) share price was a very strong performer on Thursday.
The payments company's shares rocketed as much as 20% higher following the release of a positive announcement.
What did Zip Co announce?
On Thursday Zip Co announced a strategic agreement with Amazon Australia.
This agreement sees Zip immediately become a payment option for customers shopping on Amazon.com.au. It also means that it is Amazon's first Australian instalment payment option.
Zip CEO and Managing Director, Larry Diamond, said: "We are thrilled to have secured this strategic agreement with Amazon Australia, providing customers with a more flexible way to pay. This agreement puts Zip firmly on the main stage by allowing customers shopping on Amazon.com.au to use Zip to pay at their pace. The agreement delivers a fantastic experience for customers who are looking to own the way they pay."
Is it too late to invest?
One leading broker doesn't believe it is too late to buy Zip Co's shares.
According to a note out of UBS, its analysts have taken their sell rating off its shares. Furthermore, they have upgraded their rating all the way up to a buy.
The broker has a price target of $4.80 on its shares, which implies potential upside of approximately 21% over the next 12 months.
It prefers Zip Co to rival Afterpay Touch Group Ltd (ASX: APT), which it is famously very bearish on. This is due to its belief that Zip Co has less exposure to the risks associated with the buy now pay later model.
However, one broker which isn't as positive is Morgans. Although it appears to be a fan of the company and sees this Amazon deal as a positive, it retains its hold rating on valuation grounds. It notes that Zip Co's shares have quadrupled in value this year.
