AU : Afterpay Touch - Looking to pack their bags

APT released its 3Q21 business update to the market. Group sales of A$5.2bn were up ~100% on pcp (down 9% sequentially), while group customers and merchants were both up ~75% on pcp (+11%-15% on 2Q21 respectively). Management noted that group margins remain firm and loss rates remain below historical levels. APT will begin to explore the possibility of a US listing (with the North America division now the largest contributor to the group). We lower our FY21F/FY22F EPS forecasts by 7%-8% on slightly lower sales growth assumptions. Our price target falls to ~A$121. APT is a quality business, in our view, but we retain our Hold recommendation on valuation grounds.

Most Viewed See latest

This publication is being distributed by Tellimer solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not con...

Full Tellimer disclaimers