broker updates, page-4

I'm all ear to hear the latest deep thoughts from the UBS valuation guru...

From 16 April 2020:
Describing that near-term impact, UBS sees this uncertainty potentially manifesting itself as a rise in bad debts, less frequent use the service, the decline of customer growth, and maybe most interestingly, an ‘impairment to L-T customer assumptions.’

‘We fundamentally view APT as an unsecured consumer lending business that is trading at ~9x book equity (FY20E) in the lead-up to a severe recession or possible depression,’ said UBS analysts.

It is such a view, coupled with the investment bank’s other concerns, that explains the significant divergence between APT’s current share price of around $27 per share; and UBS’s current bearish 12-month price target of just $13 per share.