Citi has initiated coverage of Afterpay Touch with a Neutral rating and $33.70 price target. The analysts hold the view the market might be underestimating the growth levers embedded inside this business model.
Despite the above, the analysts retain a more cautious view as regulatory risks remain. Equally important, near term the company cannot escape further cost investment required to support growth plus competition is increasing.
Sector: Software & Services.
Target price is $33.70.Current Price is $33.04. Difference: $0.66 – (brackets indicate current price is over target). If APT meets the Citi target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
