Morgan Stanley assesses the entry of Commonwealth Bank ((CBA)) into the Australian BNPL market has put the focus on price competition. Target is reduced to $149 from $159. Overweight rating retained.
Read MoreUBS cites Commonwealth Bank’s ((CBA)) foray into BNPL as evidence of competition in the space. It’s also considered to highlight risk around ‘no surcharge’ rules. Sell rating and $36 target retained.
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Afterpay’s rapid global expansion has taken the market by storm but not all are convinced of its value.
Read MoreAfterpay’s first half revenues grew 89% year on year, but that was sequentially below growth of 97% and 96% in the prior two halves and short of expectation. Neutral and $140 target retained.
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While Afterpay shares were suspended until Monday to allow the company to raise $1.25 billion, shares in BNPL rival Zip took a hammering after an unimpressive interim report.
Read MoreAfterpay is building up its forces to step up its attack on the US retail credit market, revealing on Thursday that it will spend $373 million on increasing its ownership of the company’s rapidly growing US business.
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Fears about the rapid rise in buy now pay later schemes being offered by companies such as Afterpay have led the UK’s Financial Conduct Authority to take steps aimed at reining them in.
Read MoreUnderlying sales in November were ahead of Morgan Stanley’s forecasts by 15%. The broker forecasts $9.6bn in first half sales, or growth of 102%.
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Dion Hershan, Head of Australian Equities at Yarra Capital Management, looks at the opportunities that are emerging from a bleak 2020.
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Anton Tagliaferro and Daniel Moore analyse the fundamentals of Amcor, Brambles and Orica and seek to provide an objective insight into the ‘blue sky’ being factored into Afterpay’s share price.
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With certain sectors at extreme valuations, managing risk is more important than ever when investing in small caps. Marc Whittaker and Phillip Gray from Investors Mutual discuss their key tenets for managing risk in the small-cap sector.
Read MoreShares in Afterpay, the buy now, pay later company ended at an all-time high yesterday after a bullish quarterly update. The shares rose 7.3% to end at $102.97, up slightly from last week’s record close of $102.25.
Read MoreShares in buy now pay later group, Afterpay hit an all-time high of $105.80 yesterday after it announced a new partnership with Westpac. The deal will see Westpac granting Afterpay customers a savings account that can be used as an ordinary savings account but will also be mined for behavioural data.
Read MoreThe key financial regulator, AUSTRAC will not be taking regulatory action against the buy now pay later pioneer, Afterpay over its money laundering disclosures.
Read MoreCompetition 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 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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Not everything’s going right for the smaller banks, but the findings of the Hayne Royal Commission present a perfect opportunity to woo discontented Big Four customers. Should investors follow?
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