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 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.

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
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

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.