AfterPay (APT) gets hit on a downgrade

Stock

AfterPay (APT) $25.70 as at 9/07/2019

Event

Buy Now Pay Later (BNPL) market leader AfterPay has seen a little shine taken off the share price today with the stock taking a 4.5% hit on the back of a broker downgrade – Goldman Sachs increased their price target marginally to $27.15, however they struggled to come up with a reasonable risk vs reward scenario to buy APT given the share price was less than 1% below that level overnight – they think the horse may have bolted

The downgrade comes ahead of full year results due out next month where Goldman’s has downgraded expected revenue by 7% and has forecast the company to swing back into a marginal full year loss. Revenue for the next two years was also revised lower by 2-6% a piece.

The market is clearly long the name – of the 8 analysts that cover the stock, 6 have a buy rating.

AfterPay (APT) Chart

Afterpay Touch (APT) Chart

Market Matters Take/Outlook

You need to be a member to view this article

REGISTER FOR FREE INSTANT ACCESS

Already a member? Login Here