CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

ASX 200 passes 6000, Citi raises Afterpay price target to $64.25

The Australian benchmark flirts with the 6,000 point level, Afterpay makes new highs and iron ore prices remain elevated.

ASX 200 and APT Source: Bloomberg

ASX 200 retains its momentum

It's been a bullish week for the ASX 200 benchmark, with the key Australian index trading 2.05% or 119 points higher between Monday and Wednesday. The ASX retained that momentum on Thursday – following a relatively optimistic US session overnight – trading past the 6,000 point mark a little after noon.

The ASX 200 last traded at 6,033 points.

On a more granular level, at the time of writing, real estate investment trusts (A-REITs) and information technology stocks were the best performing in Australia; while ASX-listed materials stocks were the worst performing.

Afterpay share price hits new all-time highs

Market darling Afterpay (APT) has been a standout performer in recent weeks – with the fast-growing company continuing to make higher highs. At the time of writing the Afterpay share price traded at $66.87 per share, some 700% higher than it did in March, on an implied market cap of $16.68 billion.

This comes after the fast-growing company last week announced that the UK-based Clearpay – which APT purchased in August 2018 – had reached 1 million active customers in its first year of operations. More positive still, in a statement to the market, Afterpay said that 'Customer purchasing frequency in the U.K. is outpacing the U.S. when it was at the same stage of lifecycle, with customers transacting more than 8 times within the first year compared to the U.S. which was at 6 times during its first year.'

Citi analysts, reassessing the assumptions on the stock, today raised their price target on Afterpay from $27.10 per share to $64.25 per share – though maintained their Neutral/High Risk rating.

Centrally, Citi analysts argued that APT is set to be a key benefactor of the accelerated shift to e-commerce, with the investment bank expecting the company’s gross merchant volumes (GMV) to grow by ~70% in fiscal 2021.

Even so, the investment bank remains aware of the risks facing the company, saying ‘we are cautious on the outlook for consumer discretionary spend and bad debts when fiscal stimulus measures end.’

Other bits and pieces

Elsewhere this week, online furniture and homewares company Temple & Webster (TWP) reported that it had successfully completed a $40 million capital raise; AMP Limited (AMP) finalised the long-awaited sale of AMP Life to UK-based Resolution Life, in a deal valued at $3.0 billion; and J Capital resumed its criticism of WiseTech Global (WTC).

In commodity markets, West Texas Intermediate's front-month contract traded at US$39.87 per barrel; while Brent Crude – the international benchmark – saw its front-month contract trade at US$42.10 per barrel, as of 11:38PM (EDT).

By comparison, gold and silver futures contracts were both down; while iron ore futures continued to trade around US$100 per tonne, as supply-side issues persist.

Want to trade equity markets – long or short?

Create an IG trading account or log in to your existing account to get started now.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.