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.
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