The Afterpay Touch Group Ltd (ASX: APT) share price climbed 13% today, making it the bright star on the ASX today.
Afterpay Touch is the owner of the popular “buy now, pay later” app. As of mid 2019, Afterpay had over 5.2 million registered users worldwide, making it one of Australia’s true technology success stories.
Afterpay’s Exciting Day
As Rask Media writer Luke Kennelly wrote about earlier, there were two reasons why the Afterpay share price got a big boost today.
AUSTRAC Update
External auditor Neil Jeans has provided the interim report to AUSTRAC. The interim report is said to not contain any recommendations as these will be left for the final report to AUSTRAC.
Afterpay told investors that Mr Jeans has advised the company that his work is now ongoing to complete the assessment of and test the implementation and compliance with the various anti money laundering / counter-terrorism financing (AML/CTF) programs in place during and after the notice period.
The millennial-focused business said it hasn’t identified any money laundering or terrorism financing activity on its systems so far.
Afterpay disclosed that another update will be provided once Mr Jeans has given his final report to AUSTRAC. For now, nothing bad is happening to AUSTRAC.
Goldman Sachs
The US broker was the other reason why Afterpay shares flew higher today.
Brokers like Goldman Sachs like to set ‘price targets’ which is the price they believe the share will reach over the next 12 months, not what it’s worth today.
The analysts at Goldman Sachs have set a price target of $42.90, which means it thinks the share price could rise another 19% over the next year.
It would be quite amazing if Afterpay reaches above $40 over the next year, when we questioned whether Afterpay shares would hit $30 in 2019. With the current valuation (and Goldman’s expectations) it’s either all going to go right or be a big misjudgement of the future.
Holding Afterpay shares is exciting, but the growth shares in the free report below could be better value today.
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