Competition in the Buy Now Pay Later market is accelerating, as rivals are attracted to the economics generated by first mover Afterpay. How well can the two local providers withstand the onslaught?
Read MoreFY20 results were pre-announced. Morgan Stanley notes Afterpay continues to innovate which supports margins and growth. The company is exploring opportunities in select Asian markets.
Read MoreShares in Afterpay slowed their rapid rise of recent days yesterday despite the buy now pay later company revealing a solid set of results for the year to June and plans for more expansion this financial year.
Read MoreGiven the very positive reaction from investors to the Kogan retail issue, buy now pay later group, Afterpay will be knocked down in the rush from its retail base when its offer opens shortly.
Read MoreUBS was not surprised by the $800m capital raising and the $250m sell-down by the company’s co-founders, assessing this is understandable in the current situation.
Read MoreBuy now, pay later group Afterpay will raise $800 million in fresh capital as part of a strategy to speed up its global expansion, while co-founders Anthony Eisen and Nicholas Molnar will sell $250 million in shares as an add-on to the raising.
Read MoreThe company continues to benefit from a shift to online because of the pandemic restrictions while government stimulus is also helping boost consumption.
Read MoreThe stock is trading at its highest multiples compared with historical averages. Morgans upgrades earnings forecasts for the next two years because of improved revenue and bad debt assumptions, based on recent trends.
Read MoreAfterpay has indicated there are now more than 5m active customers in the US. No update on other markets was provided.
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The New Criterion’s Tim Boreham assesses what the virus and lockdown mean for Afterpay and other listed buy now, pay later companies.
Read MoreShares in troubled department store Myer plunged by more the 44% yesterday for no apparent reason.
Read MoreIf you exclude the likes of Afterpay Touch, then the financial sector did not help the wider market in 2019.
Read MorePursuant to yesterday note, in which the broker reiterated its Sell rating for Afterpay Touch based on a perceived high credit risk for the BNPL sector, and higher still for Afterpay individually, the broker has increased its sales forecasts following yesterday’s update from management.
Read MoreWhile 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”.
Read MoreCiti analysts have dug deeper into web site traffic and app downloads for the Buy Now, Pay Later sector in general. Their conclusion is that Afterpay Touch had a solid October in the USA.
Read MoreMorgan Stanley considers the stock oversold amid concerns around the payments review announced by the Reserve Bank of Australia. The RBA will recommence a review of card payment regulations in early 2020.
Read MoreThe big test of Australia’s still frothy listed tech sector intensifies from today as investor luvvies like Afterpay Touch, Zip, and WiseTech Global come under renewed pressure from suddenly sceptical traders.
Read MoreCiti 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.
Read MoreAfterpay Touch shares jumped yesterday after a board and management shake-up which is aimed at presenting new faces to investors and regulators.
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The Australian Stock Exchange’s status as the global home of listed buy now pay later stocks is under scrutiny and yet the bandwagon keeps rollin’ on.
Read MoreAfterpay Touch is required to appoint an AUSTRAC-approved external auditor to look into its compliance with the anti-money laundering regulations. The company must provide AUSTRAC with a copy of the final audit report within 120 days of the external auditor being engaged.
Read MoreAfterpay Touch shares fell another 6% yesterday as investor disquiet saw another round of selling with more than 4.5 million shares traded.
Read MoreA day after consumer credit group, Afterpay Touch raised more than $300 million and the three founders sold shares worth more than $100 million to two US investment companies, the shares plunged 12% after the financial intelligence regulator, AUSTRAC revealed it believes the company had been involved in money laundering.
Read MoreAnd its fund raisings all-around at buy now pay later service Afterpay Touch – the three founders are pocketing at least $100 million from selling some of their shares to two new US investors while the company itself is asking investors for $300 million to fund its expansion into the United States.
Read MoreThe company has provided key metrics in its Australasian business, along with an update on its expansion in the US and UK. The main positive, for Morgans, was US business, which was substantially higher in terms of sales, merchants, and customers in the second half.
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Read MoreThe company has reported solid business momentum with strong initial traction in the US and positive trends in Australasia. Morgans found no large surprises in the disclosure but conservatively alters international forecasts for the near term.
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