One area of the share market which I think has a lot of potential is the payments industry.

Cash and credit card usage has been declining over the last few years and several companies are aiming to take advantage of this by disrupting the industry with innovative solutions.

Two ASX payments shares which I think are destined for big things are listed below. Here’s why they could be great long term investments:

Afterpay Ltd (ASX: APT)

This payments company is rapidly disrupting the industry with its buy now pay later offering. Its success has been so great, the word Afterpay is used by many as a verb now for buying something and paying for it in instalments. In addition to this, with millions of consumers using its platform in the ANZ, UK, and U.S. markets, it has become a must have for retailers.

There were concerns that Afterpay’s business model could struggle during tough times. Not only have sales remained very strongly, but its bad debts have remained stable during the pandemic. The has been driven by the flexibility of its model, which has allowed it to lower its risk without stifling its growth. In light of this and its global expansion opportunity, I believe Afterpay is well-placed to be a long term market beater.

Pushpay Holdings Group Ltd (ASX: PPH)

Another payments company which I think is destined for big things is Pushpay. It is a growing donor management platform provider for the faith, not-for-profit, and education sectors. Pushpay’s innovative solutions simplify engagement, payments, and administration, allowing users to increase participation and build stronger relationships with their communities. It also means the day of handing around the hat in church for cash donations are over.

I’ve been very impressed with its performance over the last few years and particularly in FY 2020. Earlier this month it reported a 33% increase in operating revenue to US$127.5 million and a 1,506% jump in EBITDAF to US$25.1 million. Pleasingly, management is confident there will be more strong growth this year. It expects to double its operating earnings in FY 2021 despite the coronavirus pandemic. Looking further ahead, it is aiming to capture a 50% share of the medium and large church segments. This is estimated to be worth US$1 billion in annual revenue. Given the quality of its offering and its recent acquisition, I believe it can achieve this goal and drive strong earnings growth over the next decade.

More reading

• A global tech giant wants to challenge Afterpay
• ASX 200 down 0.2%: Afterpay hits a record high, Aristocrat Leisure update disappoints
• Where to invest $20,000 into shares right now
• Why Afterpay, AMA, NRW, & Santos shares are racing higher
• Why I’d invest $1,000 in this ASX tech share today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on them:

Computershare Limited (ASX: CPU)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $11.00 price target on this share registry company’s shares. The broker notes that Computershare has reaffirmed its guidance for a 20% decline in management earnings per share. While this is being seen as a positive, it still has concerns over falling margin income over the next couple of years due to low interest rates. The Computershare share price is trading at $12.79 today.

TechnologyOne Ltd (ASX: TNE)

Analysts at UBS have downgraded this enterprise software company’s shares to a sell rating with an increased price target of $8.20. The broker has been looking through TechnologyOne’s half year update and notes that its revenue fell a touch short of its expectations. This may make it difficult for it to deliver on its full year expectations. Outside this, the broker has concerns over its lofty valuation. Prior to today, its shares were trading at 51x estimated full year earnings. At the time of writing they are changing hands for $9.70.

Treasury Wine Estates Ltd (ASX: TWE)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on this wine company’s shares slightly to $9.60. The broker notes that other wine producers have seen an uptick in demand in China recently. While this is a positive, it does have concerns that Treasury Wine Estates could be hit with tariffs given the frosty Australia-China relationship. The company’s shares are trading at $9.82 this afternoon.

More reading

• The latest ASX stocks hit by broker downgrades today
• ASX 200 down 0.2%: Afterpay hits a record high, Aristocrat Leisure update disappoints
• Why ASX 200 iron ore miners are your best bet for dividends right now
• How to invest $1,000 in ASX 200 shares like Warren Buffett today
• Why I’d invest $1,000 in this ASX tech share today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Top brokers name 3 ASX 200 shares to sell today appeared first on Motley Fool Australia.

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