Although it finished the day flat, during morning trade the Afterpay Touch Group Ltd (ASX: APT) share price climbed to an all-time high of $6.55.
This brought the payment technology company's six-month return to an impressive 118%.
Is it too late to invest?
Whilst I wouldn't necessarily expect to see Afterpay Touch's shares rise by the same magnitude over the next six months, I still believe there is meaningful upside ahead for its shares this year.
I've been thoroughly impressed at the way the Afterpay buy now, pay later service has penetrated the retail sector.
It seemed as though every shop I went into during my Christmas shopping trips had an Afterpay sign proudly displayed in its window.
Companies using its platform include Premier Investments Limited (ASX: PMV), Myer Holdings Ltd (ASX: MYR), Sephora, and Qantas Airways Limited (ASX: QAN) subsidiary Jetstar.
It isn't hard to see why the service is popping up in countless retail stores. Although not all retailers have provided the results of its addition, those that have shared their data show increases in average order value, conversion rates, and store sales.
Furthermore, consumers appear to have really taken to the service. I cannot count how many times I have heard people use the word Afterpay as a verb. With both retailers and consumers on side, I think the Afterpay service has a bright future both at home and potentially even overseas.
I'm not the only one that is bullish on the payment technology company. A research note out of Goldman Sachs last month revealed that its analysts have added it to their conviction buy list with a $7.30 price target.
This price target implies potential upside of over 12% for its shares over the next 12 months. I think this makes it well worth considering today, despite how strongly its shares have rallied in recent months.
