Tencent has become a substantial investor in Afterpay, and this is expected to evolve into a business partnership.

Morgan Stanley assesses a strategic investor is likely to stabilise the share price, which has experienced increasing volatility because of market concerns about credit losses.

It could also help Afterpay diversify from its initial focus on fashion and beauty retailing.

Equal-weight. Target is $19.00. Industry view is In-Line.

Sector: Software & Services.

Target price is $19.00.Current Price is $29.16. Difference: ($10.16) - (brackets indicate current price is over target). If APT meets the Morgan Stanley target it will return approximately -53% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena