Here’s what leading brokers are saying about the Afterpay (ASX:APT) share price in July 2021

Australia’s original buy now, pay later has had a quiet year in 2021. Could now be the time to buy?

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Afterpay Ltd (ASX: APT) has been underwhelming for shareholders in 2021, with the Afterpay share price slipping 2.7% so far this year

In light of this, it’s no surprise that investors will be interested to know what analysts think the Afterpay share price is going to do next.

What are leading brokers saying about the Afterpay share price?

Currently, the Afterpay share price is wearing a $115 price tag, but some leading brokers think there could be an upside to the buy now, pay later (BNPL) provider.

For example, analysts over at Ord Minnett have retained their buy rating and $150 price target on the payment company’s shares. That would indicate a potential upside of 30% according to the broker.

Ord Minnett is bullish on the Afterpay share price following the company expanding its pay anywhere offering in the United States to 12 of the country’s biggest retailers. This includes the likes of Amazon.com, Inc. (NASDAQ: AMZN), Dell Technologies Inc (NYSE: DELL), Nike Inc (NYSE: NKE), and Target Corporation (NYSE: TGT). Collectively these 12 retailers account for almost half of all online retail volume in the market.

Another broker’s take on Afterpay

Not all brokers are on the same page of the Afterpay share price book though. A note out from UBS writes a much redder story.

The broker holds a sell rating with a price target of $42. This would suggest a potential downside of nearly 64%.

While the analysts conferred the recent pay anywhere offering is a positive move, they still consider Afterpay shares to be considerably overvalued at current levels.

Somewhere in between

Finally, analysts over at Macquarie recently provided their 2 cents worth on where the Afterpay share price could be going next.

The broker retained an outperform rating, envisaging further catalysts beyond the US affiliate program which could drive a re-rating. These included the company’s money management app, Afterpay Money, set to launch in Q1 2022; a new reward scheme, the roll-out across the European Union, and offshore investments.

As a result, the broker increased its FY22-23 revenue estimates by 2% to 6% and raised its own price target from $120 to $140 a share.

Macquarie analysts conceded that while the company’s shares no longer look “cheap” compared to peers in the BNPL space, they don’t look expensive either.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Amazon, and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Macquarie Group Limited. The Motley Fool Australia has recommended Amazon and Nike. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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