It has been another positive day of trade for the Afterpay Touch Group Ltd (ASX: APT) share price.
In morning trade the payments company's shares climbed a further 5% to an all-time high of $23.49.
This latest gain means the Afterpay Touch share price has rocketed an astonishing 96% since the start of the year and 291% since this time last year.
Can the Afterpay Touch share price go higher?
According to one leading broker the Afterpay Touch share price still has further to run.
A note out of Bell Potter a few weeks ago revealed that its analysts have a $28.02 price target on the company's shares.
This price target still implies potential upside of over 19% despite its stellar rally this year.
Why is Bell Potter bullish on the company?
Bell Potter was very impressed with the company's first half result and believes it shows "that it can expand overseas while maintaining a lid on bad debts, and a stable overall net-margin."
The three key variables that the broker has the most interest in are its Customer Growth Rate, Net-Margin Trajectory, and Attrition Rate of Customers.
Pleasingly, the broker notes that all "three of the above factors are tracking ahead or in line with expectations"
In light of this, Bell Potter expects Afterpay Touch to grow its sales to $210.7 million in FY 2019 and then to $641.9 million by FY 2021.
Even stronger growth is expected with its adjusted EBTDA. The broker has forecast $14 million EBTDA in FY 2019 and then a whopping $114.1 million by FY 2021.
This is expected to be driven by strong growth in active customers. By FY 2021 Bell Potter expects there to be 4 million ANZ customers, 6.3 million U.S. customers, and 1.4 million U.K. customers. This means a total of 11.7 million customers, compared to 3.5 million as of February 22.
Should you invest?
Whilst some of these figures may look ambitious, I think the popularity of the Afterpay platform with both consumers and merchants means there's a strong chance that it could achieve them.
And if it does, then I suspect that the Afterpay Touch share price will be significantly higher than where it trades today.
As a result, I continue to believe it could be a great buy and hold investment option along with fellow tech stars Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).
