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
Market Matters Take/Outlook
