Here’s why the Zip (ASX:Z1P) share price is down 8% today

The Australian share market may be pushing higher today, but the same cannot be said for the Zip Co Ltd (ASX: Z1P) share price.

In afternoon trade the buy now pay later provider’s shares are down 8% to $8.80.

This compares to a 0.6% gain by the S&P/ASX 200 Index (ASX: XJO).

Why is the Zip share price sinking?

There appear to be a couple of catalysts for today’s weakness in the Zip share price.

The first is a broker note out of Macquarie on Friday. According to the note, the broker has retained its underperform rating but lifted the price target on the company’s shares to $5.70.

Even after today’s pullback in the Zip share price, this price target implies potential downside of 35% over the next 12 months.

Macquarie has…