UBS emphasises competition is a key element in its rating of Afterpay and believes the market has mispriced or ignored the amount of capital required to fund growth.
The broker reiterates the Sell rating and raises the target to $37 from $36, acknowledging the product has resonated strongly but success was always going to attract competition.
Sector: Software & Services.
Target price is $37.00.Current Price is $92.73. Difference: ($55.73) – (brackets indicate current price is over target). If APT meets the UBS target it will return approximately -151% (excluding dividends, fees and charges – negative figures indicate an expected loss).