Insights

Top broker tips Openpay (ASX:OPY) share price to rocket 130% higher

One top broker believes the Openpay Group Ltd (ASX:OPY) share price could more than double from its current levels in 2021. Here’s why…
The post Top broker tips Openpay (ASX:OPY) share price to rocket 130% higher appeared first on The Motley Fool Australia. –

Red rocket and arrow boosting up a share price chart

It certainly wasn’t a great start to the week for the Openpay Group Ltd (ASX: OPY) share price.

The buy now pay later (BNPL) provider’s shares started the week with a disappointing 6% decline to $2.15.

This means the Openpay share price is now down 30% over the last six months.

Is this a buying opportunity?

One leading broker that appears to see the weakness in the Openpay share price as a buying opportunity is Shaw & Partners.

According to a note from late last week, the broker has reaffirmed its buy (high risk) rating and $5.00 price target.

Based on the current Openpay share price, this price target implies potential upside of 132% over the next 12 months.

Why does the broker think the Openpay share price is dirt cheap?

Shaw & Partners recently attended Openpay’s investor briefing and came away from the event feeling very bullish on its long term growth outlook.

The broker commented: “Investor Briefing highlighted the very significant opportunity available to OPY in the US, notably: (1) multi-billion dollar TTV potential vs. current $165m TTV from Australia/UK at end of December 2020; and (2) the clearly differentiated offering to its homogenous “pay-in-4” and short term (<2 months) peer offering (much higher ATV, longer 2-24 month tenure, non-Retail vertical focus on Health/Auto/Home, older demographic, etc.).”

What is its market opportunity?

The broker estimates that the total addressable market for BNPL is US$6.5 trillion, with Openpay’s offering targeting ~15% of this.

This equates to a massive US$829 billion target market. This comprises US$379 billion Big-Ticket Retail, US$218 billion Health, US$78 billion Home, US$89 billion Education, and US$65 billion Auto.

Its analysts commented: “A “back-of-the-envelope” sensitivity by Shaw and Partners with respect to the potential revenue impact of US penetration(market share vs. gross revenue yield) highlights that this significant scale, opportunity and revenue runway, based on relatively conservative assumptions, could potentially yield a quantum leap in revenue generation.”

Positively, the broker notes that Openpay is well-funded to meet and support this rapid acceleration.

Overall, given its strong long term growth potential and attractive valuation in comparison to Afterpay Ltd (ASX: APT) and  Zip Co Ltd (ASX: Z1P), the broker believes the Openpay share price is trading at an “attractive” level today.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Top broker tips Openpay (ASX:OPY) share price to rocket 130% higher appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!