Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Afterpay Touch Group (APT) Shares: Buy, Hold or Sell?

The Afterpay Touch Group Ltd (ASX: APT) share price has gone ballistic since June 2017, rising from less than $3 to over $20.

Afterpay Touch is the owner of the popular “buy now, pay later” app. As of early 2019, Afterpay had 3.5 million registered users worldwide, making it one of Australia’s true technology success stories.

APT Valuation

Most traditional ‘value investors’ would baulk at the idea of buying Afterpay shares at today’s valuation because if you use traditional metrics like price-earnings (P/E) its shares look ridiculously expensive.

However, if you take a more forward-looking ‘growth’ approach to your valuation and investing, you may believe that it’ll be able to grow into its valuation and then some.

Potential Both Ways

One of the biggest pulls to Afterpay shares is the potential for overseas expansion. Already Afterpay has created a substantial ‘beachhead’ in the US market. In little over 11 months, Afterpay had added 1 million registered users with 2,000 retailers/merchants using its payment services. Away from the US, Europe and other areas of the world are growth markets too.

Aside from geographical expansion, Afterpay is also becoming a player in online referrals and advertising for the retailers it services with its credit payment options. Given the amount of traffic going to its website and app, plus its accelerating user base, Afterpay is becoming a key source of traffic for retailers. Just look to Google as an example of where this might take its business.

All-in-all Afterpay has loads of optionality.

Buy, Hold Or Sell

At the end of the day, it comes back to what type of investor you are. If you’re looking for a high-risk/high-reward type investment and you are happy to stomach the large ups and downs of share prices, Afterpay could be worthy of a small investment in a diverse portfolio.

According to The Wall Street Journal five of the six analysts surveyed have a “buy” rating on Afterpay shares.

If you’re less comfortable with the valuation or capital needs of Afterpay’s business, there may be a case for a “hold” rating. Afterpay could turn out to be a flop and fail to justify its current valuation. However, one thing that seems to be a given for now is that few analysts are willing to slap a ‘sell’ rating on Afterpay shares.

If you like Afterpay, keep reading below for two of our top ASX growth shares in a free report…

[ls_content_block id=”14947″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content