Stock Pick

  • Why the Afterpay share price just hit a record high and could still go higher

    It has been another stellar day for the Afterpay Ltd (ASX: APT) share price.

    On Wednesday the payments company’s shares continued their positive run and charged 7.5% higher to end the day at $54.52.

    At one point the Afterpay share price was up over 8% to a new record high of $54.85.

    Why did the Afterpay share price hit a record high today?

    The catalyst for this gain appears to have been a broker note out of Bell Potter.

    According to the note, the broker has retained its buy rating and lifted the price target on Afterpay’s shares to a lofty $65.00. This price target implies potential upside of over 19% from today’s close price.

    The broker believes that integrating its platform with key ecommerce and payment infrastructure players will be key drivers of underlying sales growth in the future.

    It notes that Afterpay is working with both Visa and Mastercard. It also believes there is potential for it to expand its relationship with eBay into the US or UK markets. Afterpay is currently available on eBay’s Australian platform.

    In addition to this, Bell Potter sees opportunities for Afterpay and WeChat owner Tencent Holdings to collaborate over the medium term. Given the clout that Tencent has in the Asian market, this could be a very big deal.

    And finally, while Afterpay’s shares may trade at a significant premium to the market average, Bell Potter notes that it trades on lower multiples than sector peer Shopify. This is despite it having double the sales growth trajectory of the Canadian ecommerce giant.

    Should you invest?

    While Afterpay is certainly a high risk option due to the aforementioned premium its shares trade at, I believe it has the potential to more than justify this.

    Overall, I think Afterpay can be a giant of the payments industry in the future, which is why I would still buy it with a long term view.

    Though, given the risks involved, it might be prudent to restrict an investment to just a small part of a balanced portfolio.

    And here are more top shares which analysts have just given buy ratings to…

    5 ASX stocks under $5

    One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Why the Afterpay share price just hit a record high and could still go higher appeared first on Motley Fool Australia.

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  • Novatti share price jumps 11% after announcing partnership with Alipay

    Woman holding smartphone with digital payment capability

    The Novatti Group Ltd (ASX: NOV) share price had an impressive run on the market today, finishing 11.11% higher after rallying as much as 20% in early morning trade.

    Novatti is in the business of digital banking and payments. Through technology, the company aims to position its customers to thrive in the growing cashless economy.

    Novatti has a number of transaction processing services under its banner. This includes ChinaPayments (a bill payment service), Flexepin (an open-loop cash voucher service), and Flexewallet (for remittance and compliance services).

    Overall, the company has a wide range of software solutions in the banking and payments space, including consumer digital wallets, mobile money, and voucher management systems.

    Why did the Novatti share price jump today?

    Well, this morning, Novatti announced it has partnered with Alipay to enable in-app BPAY bill payments via its ChinaPayments platform.

    More specifically, the China-focused, cross-border payments platform, ChinaPayments, has been added directly to the main page of Alipay’s app. As a result, Alipay users will be able to directly pay their Australian bills within the app.

    For some background, Novatti launched ChinaPayments in early 2018 as a first-to-market platform enabling Chinese residents to pay Australian BPAY bills using Chinese currency. So, for example, a Chinese student might use the platform to pay for things like education fees, utilities, rent, and phone bills.

    Novatti believes the platform is an innovative solution that enables Chinese residents to pay their Australian bills easily, while also improving the cashflow of Australian billers through on-time payment.

    According to Novatti, more than 500 BPAY billers have received payments through the ChinaPayments platform over the past year.

    Commenting on its partnership with the Chinese payments giant, Novatti’s managing director, Peter Cook, said:

    “Novatti has enjoyed a constructive partnership with Alipay, a global major third-party mobile and online payments platform. Our close co-operation has led to the integration of ChinaPayments into the Alipay platform and validates our strategy of working with tier one providers.”

    Mr Cook closed out his comments by stating that the integration into Alipay has led to an immediate increase in consumer enquiries, social media interaction and ultimately, more transactions on the ChinaPayments platform.

    The Novatti share price closed at 25 cents today, taking the company’s market capitalisation to around $46 million.

    If you’d rather invest in larger and more liquid companies, check out the highly-recommended ASX growth shares in the report below.

    3 “Double Down” Stocks To Ride The Bull Market

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    Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Novatti share price jumps 11% after announcing partnership with Alipay appeared first on Motley Fool Australia.

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  • Nio Sinks After-Hours On Proposed 60M ADS Offering

    Nio Sinks After-Hours On Proposed 60M ADS OfferingChina’s Nio Inc (NIO) has announced an offering of 60 million American depositary shares (ADSs), each representing one Class A ordinary share of the company. Shares fell 5% in Tuesday’s after-market trading.The electric-vehicle maker also intends to grant the underwriters in the ADS Offering a 30-day option to purchase up to an additional 9 million ADSs.Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and China International Capital Corporation Hong Kong Securities Limited are acting as the joint book-running managers for the ADS Offering.The ADSs will be offered under the company’s shelf registration statement which became effective on June 9, 2020. A preliminary prospectus supplement related to the proposed ADS offering has also been filed with the SEC.According to the press release, NIO plans to use the net proceeds from the ADS Offering mainly to fund its cash investments in NIO China, as well as other working capital needs.“We expect NIO China will use the cash investments for research and development of products, services and technology, development of our manufacturing facilities and roll-out of our supply chain, operation and development of our sales and service network and general business support purpose” the company said.NIO stock has exploded 66% on a year-to-date basis, with both Goldman Sachs and Merrill Lynch recently upgrading NIO from hold to buy. (See Nio stock analysis on TipRanks). This gives the stock a Moderate Buy consensus.Goldman Sachs’ Fei Fang upgrade came with a $6.40 price target (4% downside potential). “We believe ES6 and ES8 volume strength has transitioned from being promotion-driven to reputation-driven,” Fang told investors, adding that never before has a domestic premium Chinese auto brand had a waiting list.He expects NIO to break even in 2022 once it can deliver 10,000 cars per month. Encouragingly, the company recently revealed that it delivered 3,436 vehicles in May 2020, representing a strong 215.5% growth year-over-year.“In May, we achieved record-high monthly deliveries in our history” cheered William Bin Li, founder and CEO of NIO. He stated that the company “will further increase our production capacity and expand our sales network to support our future growth.”Related News: Tesla CEO Elon Musk Sees Model Y Facing Production Challenges Grubhub Shares Lifted On Report Of European Acquirers Lining Up Can Tesla Provide the Million Mile EV Battery? Top Analyst Weighs In More recent articles from Smarter Analyst: * GameStop Down 7% After-Hours As Earnings Fail To Impress * Apple Seeks To Boost Sales Via Mac Trade-Ins, Payment Plans- Report * Mastercard Sees Improvement In May Switched Transactions As Lockdown Eases * Elanco Gets EC Anti-Trust Clearance For $7.6 Billion Deal To Buy Bayer Unit

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