A new company has entered Internet Bull Report’s portfolio: Afterpay Touch Group Ltd, ticker (ASX) $APT trading at $7.85 AUD.
APT is a technology payments company that allows customers to buy a product now and pay for it later via four installments. Afterpay is headquartered in Australia and listed on the Australian Securities Exchange (ASX: APT) since March 2017.
The 52 week high/low: $7.85 – $2.94 AUD
May 15, Afterpay announced they would be entering the US market by partnering with clothing brand Urban Outfitters ($URBN).
The size of the US market is substantial and represents a very significant opportunity for Afterpay.
Key statistics include:
- In 2017, total US retail sales were more than US$ 3,800bn, with over US$450bn purchased online, which compares to the Australian online market of approximately US$ 18b.
- The US online fashion market alone is US$ 60bn.
- More than 15% of the US total fashion market is purchased online.
- The millennial market in the US has a population of 63 million.
- 67% of US people aged 18-29 do not own a credit card.
Moreover, Afterpay has had to date an incredible performance. The idea and team behind it are excellent. They assume all customer non-payment risk and don’t allow customers to keep transacting if they can’t make a payment. Afterpay has maintained low default rates relative to all market comparators. They continuously report revenue jumps, and it’s the 170th largest company quoted on the ASX.
On top of all this, institutions are nibbling (we expect much more buying from them).
We like what we see and hear a lot. At the moment, we see very little risk and big upside.
Our 2018 target is $15 AUD.
Anna & the IBR Team