It has been a disappointing year so far for the Openpay Group Ltd (ASX: OPY) share price.
At one stage in February, the buy now pay later (BNPL) provider's shares were up as much as 41% year to date to $3.35.
Since then, the Openpay share price has given back all those gains and a little bit more. This is despite the release of a couple of very positive updates during this time.
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Is the Openpay share price in the buy zone?
Analysts at Shaw & Partners believe that this could be a buying opportunity for investors.
According to a note from last week, the broker has reiterated its buy (high risk) rating and $5.00 price target on its shares.
Based on the current Openpay share price of $2.30, this price target implies potential upside of over 100% over the next 12 months.
What did the broker say?
Shaw & Partners notes that Openpay has announced the signing of an agreement with payments giant FIS Worldpay. This was hot on the heels of the announcement of its entry into the US$55.8 billion US and UK veterinary markets via partnerships with ezyVet.
The broker said: "Another milestone partnership on the back of the recent ezyVet deal further demonstrates OPY's ability to integrate into leading global payments providers like FIS Worldpay but also augment that with service specialist requirements with a variety of healthcare partners, a major differentiator to its BNPL peers, and augments the recently inked partnership with St John of God Health Care, delivering higher-value plans to help customers split payments for important needs – like elective surgery, dental, optometrist, car servicing and now pet care – over longer terms."
Its analysts also point out that the Openpay share price trades at a significant discount of 42% compared to its listed BNPL peers.
They estimate that Openpay is trading on an FY 2022 EV/Sales multiple of 5.3x compared to the average of its ASX peers of 9.1x.
