Macquarie envisages more catalysts beyond the US affiliate program will drive a re-rating, such as Afterpay Money, a new reward scheme, the roll-out in the EU and offshore investments.
The broker increases FY22-23 revenue estimates by 2-6%. While maintaining an Outperform rating Macquarie acknowledges the stock is no longer looking “cheap” versus peers in the segment, but is not overpriced either. Target is raised to $140 from $120.
Sector: Software & Services.
Target price is $140.00.Current Price is $118.17. Difference: $21.83 – (brackets indicate current price is over target). If APT meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
