Afterpay rises on Qantas partnership, UBS ups PT to $25

As Afterpay announces a partnership with Qantas, UBS remains sceptical on the buy now pay later company’s prospects.

Afterpay and Qantas partnership in focus

The Afterpay (APT) share price rose during the morning session after the Buy Now Pay Later (BNPL) darling announced it had partnered up with Qantas Airlines.

Centrally, as part of the Qantas-Afterpay partnership, by linking their accounts, Afterpay and Qantas Frequent Flyer users will be eligible to accrue up to 5,000 Qantas frequent flyer points for purchases made on the BNPL platform.

The partnership is set to officially launch this week.

Speaking of today's announcement – Qantas Group’s Loyalty CEO – Olivia Wirth said 'Financial services is one of the most popular ways to earn points in the program, it's the quickest and easiest way to build your points balance.'

'With our 13 million members all having different spending habits and financial preferences, it's great to be able to offer more options and more rewards.'

Afterpay’s Anthony Eisen, by comparison argued that the partnership 'would provide significant upside for Afterpay customers.'

'We are always looking for ways to add value for our customers and this partnership between two iconic Australian brands is a great way to reward them for shopping with Afterpay.'

The Afterpay share price traded bullishly in early morning trade following the Qantas partnership announcement, rising 1.53% or $1.030, to $68.540 per share as of 11:08 AEST. At those price levels, the company has an implied market capitalisation of ~$18.0 billion.

Ultimately, the BNPL darling has seen its fortunes reverse significantly in recent months, defying the sceptics to trade ~700% higher, off the lows it recorded in March.

Qantas (QAN) – by comparison – traded down in the opening hours of trade, as aviation stocks continue to struggle. Overall, the airline’s stock is down around 45% year-to-date – with the coronavirus pandemic causing the global aviation industry to grind to a halt.

UBS ups price target, retains Sell rating

Elsewhere, the seemingly perma-bear UBS has held firm to its Sell thesis on Afterpay, though today upped their price target to $25.00 per share.

Though UBS notes that Afterpay has benefitted from the accelerated adoption of e-commerce as a result of Covid-19, the investment bank’s analysts nonetheless said: ‘we think the market is failing to appreciate the capital intensity required to fund APT's growth’, while conceding ‘in the absence of a catalyst, we acknowledge the market may continue to view valuation through a different lens.’

By contrast, UBS's bull case, upside target sits at $90.00 per share; while its downside, bear case target sits at $9.00 per share.

Want to trade Afterpay: long or short?

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

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

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.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.