After a third quarter business update, Morgans lowers FY21 and FY22 EPS forecasts by -7% and -8% on slightly lower sales growth assumptions. The price target falls to $121 from $125.3, while the Hold recommendation is unchanged on valuation grounds.
Management noted that group margins remain firm and loss rates remain below historical levels. The company will begin to explore the possibility of a US listing as the North America division is now the largest contributor to the group, explains the broker.
Afterpay launched in Spain, France and Italy during the third quarter and Clearpay is on track to launch in Germany in the first half of FY22.
Sector: Software & Services.
Target price is $121.00.Current Price is $125.23. Difference: ($4.23) – (brackets indicate current price is over target). If APT meets the Morgans target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
