The Afterpay Touch Group Ltd (ASX: APT) share price has been one of the best performers on the local market for a third straight session.
At one stage the payments company’s shares were up almost 9% to $15.64. At the time of writing they have given back some of these gains but still sit close to 6% higher at $15.20.
Why are Afterpay Touch’s shares on fire again?
On Friday Bell Potter released a positive broker note suggesting Afterpay Touch’s shares could reach $21.00 within the next 12 months. Today it was the turn of Ord Minnett to release a bullish broker note.
According to the note, the broker has retained its buy rating and almost doubled the price target on Afterpay Touch’s shares from $9.30 to $18.50.
Ord Minnett was impressed with last week’s business update and believes the company has a massive opportunity in the U.S. market. It estimates the size of the opportunity to be as much as 20x greater than in Australia.
As a result, if its U.S. expansion proves to be a success, it believes its shares will look cheap at this level.
Should you invest?
I was very impressed with the strong start it has made in the U.S. market, especially in regards to the number of retailers it has agreements with.
And while I think it would be a great buy and hold investment, buying in at this point does carry a lot of risk.
Investors that want to pick up shares in Afterpay Touch might want to consider doing so in small purchases. By buying a little this week and a little further down the line, you may be able to benefit from any profit taking pullbacks, while not missing out if its shares take off and don’t come back down.
Alternatively, these top mid cap growth shares could be in the buy zone today as well.
We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.
That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.
We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Bravura Solutions Ltd. 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.