The Afterpay Touch Group Ltd (ASX: APT) share price is charging higher again on Tuesday.
In morning trade the payments company's shares have pushed 4% higher to another all-time high of $28.70.
Why is the Afterpay share price on the charge today?
Investors have been fighting to get hold of the company's shares again this morning following the release of a bullish broker note out of Ord Minnett.
According to the note, the broker has retained its buy rating and lifted the price target on Afterpay Touch's shares from $23.00 to a lofty $32.30.
This price target implies potential upside of over 12% for its shares over the next 12 months.
Why is Ord Minnett bullish on Afterpay?
The broker made the move after lifting its sales estimates following channel checks which revealed that the company has experienced an acceleration in merchant additions and high levels customer engagement.
In addition to this, although the broker acknowledges that the average spend by U.S. consumers using Afterpay is notably lower than in the ANZ region, it remains confident that this metric will increase in time as it did in the local market.
Ord Minnett isn't the only broker that has been pleased with the company's development.
A note out of Goldman Sachs last week revealed that its analysts have retained their buy rating on the company's shares after app download data in the United States remained strong in April.
Based on this data, the broker believes that Afterpay is on track to achieve between 1.7 million and 2.1 million users in the U.S. by the end of June.
Should you invest?
Whilst I think Afterpay Touch's shares are about fair value now, I still think it would be a great investment option if you're prepared to hold onto its shares for the long term.
In addition to Afterpay Touch, I believe Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) shares could prove to be equally good buy and hold investments.
