While a young Afterpay Touch failed to comply fully with compliance legislation, those issues have been addressed and the independent auditor has found the company’s monitoring “effective, efficient and intelligent”.
An AUSTRAC fine still cannot be ruled out, but Morgans suggests it would be trivial in the context of an $8bn market cap.
Otherwise, the broker notes Afterpay’s early progress in the UK/US is encouraging and upside is on offer if its offshore strategy is successfully executed. Add retained, target rises to $35.82 from $32.60.
Sector: Software & Services.
Target price is $35.82.Current Price is $32.77. Difference: $3.05 – (brackets indicate current price is over target). If APT meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
