APT – UBS rates the stock as Sell

UBS observes while Afterpay reported a strong quarter, the update was mixed versus UBS’s expectations.

With customer growth in North America tracking in-line with the broker’s forecast at 1.2m, the UK also fared better than expected though customer growth was softer than anticipated.

In A&NZ, UBS highlights slowing customer growth led by the relative maturity of the market. The broker has lowered its FY21 sales forecast for the region by -4% to $9.75bn.

Even so, the revisions are immaterial to UBS’s earnings forecasts over the medium term.

Sell rating with a $36 price target.

Sector: Software & Services.

 

Target price is $36.00.Current Price is $125.23. Difference: ($89.23) – (brackets indicate current price is over target). If APT meets the UBS target it will return approximately -248% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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