Afterpay shared have jumped 5.1 per cent this morning, to $77.28, after the Bank of Spain has officially approved Block’s (formerly Square) takeover of the Aussie BNPL giant.
This comes less than a week after equities analysts at Morgans lowered price targets and earnings expectations for the company, noting that investor sentiment had soured, and “earnings visibility remains poor”.
Morgans lowered the price target on Afterpay to $91.49, from $132, a drop of 31 per cent.
“The sector is suddenly unloved by investors, so solid 1H22 results are required to change sentiment,” wrote Morgans analyst Richard Coles in a note to investors.
“We expect strong revenue growth for Afterpay and Zip, but we still expect both stocks to report first-half losses.”
Zip Co also jumped 4.1 per cent this morning, to $4.08.
