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Why Afterpay and these ASX shares hit all-time highs today

The market may have tumbled lower on Thursday, but that didn’t stop some shares from pushing higher.

In fact, three top shares have just climbed to all-time highs. Here’s why they are flying high:

The Afterpay Touch Group Ltd (ASX: APT) share price climbed to an all-time high of $25.48 on Thursday. Investors have been fighting to get hold of the payment company’s shares in recent months after its expansion into the United States was even more successful than hoped. One broker that has been impressed with its performance is Goldman Sachs. It recently retained its conviction buy rating and lifted the price target on its shares to $27.00. Goldman made the move after revising its valuation approach and upgrading its estimates following a review of the latest indicators in the U.S. market. I agree with Goldman and think Afterpay Touch would be a great long-term investment.

The Jumbo Interactive Ltd (ASX: JIN) share price reached an all-time high of $16.90 this morning. This latest gain means the lottery ticket seller’s shares have now rallied an incredible 133% since the start of the year. A key catalyst for this gain was the company’s half year results. In the first half of FY 2019 Jumbo posted a massive 140% increase in net profit after tax from continuing operations to $12.7 million. This led to management lifting its full year FY 2019 guidance for net profit after tax of $24.2 million, which will be a 107% increase on FY 2018’s result. This morning Morgan Stanley retained its overweight rating and $20.00 price target on its shares, indicating that its strong run may not be over.

The Technology One Limited (ASX: TNE) share price continued its solid run and climbed to an all-time high of $8.51 on Thursday. This latest gain means the software company’s shares have now risen by 38% since the turn of the year. Its shares have been on fire since the release of its strong full year result and positive guidance for FY 2019 and beyond. In FY 2018 Technology One posted a 9% increase in revenue to $299 million and a 15% lift in profit before tax to $66.5 million. A key driver of this growth was its SaaS Platform business which grew its annual recurring revenues (ARR) by 41% to $38 million. Management expects more of the same in the coming years and has forecast an ARR of $143 million by FY 2022. Whilst its shares look expensive now, if it delivers on its forecast then it could yet prove to be a great investment.

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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 Jumbo Interactive Limited. 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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