Analyst Note
| Brett Horn, CFA |Narrow-moat Square reported explosive growth in the second quarter. While this is partially due to lapping the onset of the pandemic, underlying growth is impressive. Concurrent with earnings, the company announced that it will acquire Afterpay, an Australian buy-now, pay-later platform, in a deal valued at $29 billion. After reassessing our assumptions in light of recent performance and this deal, we expect to raise our fair value estimate by about 20%.