Bank of America Securities analyst Jason Kupferberg reiterated a Hold rating on Affirm Holdings (AFRM – Research Report) yesterday and set a price target of $45.00.
Jason Kupferberg has given his Hold rating due to a combination of factors surrounding Affirm Holdings. Despite a strong performance in the second fiscal quarter, which saw Affirm beat expectations and raise guidance for future quarters, the stock witnessed a decline in after-hours trading. Kupferberg notes that this could be attributed to the significant rally in Affirm’s stock price over the last two months, including a 10% increase on the day of the announcement. This suggests that the market had already priced in the positive results, leading to a “sell the news” situation given the heightened expectations.
Moreover, Kupferberg raises concerns about the risks associated with Affirm’s reliance on discretionary spending and its core consumer base. While acknowledging Affirm’s strong management of credit risk and its solid performance within the buy now, pay later (BNPL) market, he also points out potential limitations due to valuation. Despite the updated and elevated guidance for the fiscal year, Kupferberg maintains a cautious stance, reiterating a Neutral rating with a price objective that reflects only a modest upside from the current trading price.
In another report released on February 2, Deutsche Bank also maintained a Hold rating on the stock with a $35.00 price target.
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Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AFRM in relation to earlier this year.
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Affirm Holdings (AFRM) Company Description:
Affirm Holdings Inc offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The firm generates its revenue from merchant networks, and through virtual card networks among others. Geographically, it generates a major share of its revenue from the United States.
Read More on AFRM:
- Affirm Stock (NASDAQ:AFRM) Slips Post Q2 Print, Analyst Foresees Recovery
- AFRM Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Affirm price target raised to $35 from $24 at Deutsche Bank
- Affirm price target lowered to $43 from $50 at Jefferies
- Affirm price target raised to $60 from $55 at Truist
