Brokers back Afterpay to challenge Klarna in Europe

Afterpay's plan to expand into Spain, France, Italy and Portugal as part of a European land grab has been cheered by investors and fuelled new enthusiasm from brokers who say that growth justifies a share price of $96 or higher.

Afterpay shares closed Tuesday up 11.8 per cent to a record high of $92.48 and its $25.9 billion valuation now tops that of supermarket operator Coles.