7 Analysts Assess Affirm Holdings: What You Need To Know

Affirm Holdings, Inc. Class A -0.45%

Affirm Holdings, Inc. Class A

AFRM

30.92

-0.45%

Affirm Holdings (NASDAQ:AFRM) underwent analysis by 7 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 0 5 2 0
Last 30D 0 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 4 2 0
3M Ago 0 0 1 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $34.0, along with a high estimate of $50.00 and a low estimate of $16.00. This current average has increased by 31.78% from the previous average price target of $25.80.

price target chart

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Affirm Holdings. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
James Fotheringham BMO Capital Raises Market Perform $47.00 $44.00
Reginald Smith JP Morgan Raises Neutral $41.00 $35.00
Vincent Caintic Stephens & Co. Raises Underweight $16.00 $6.00
Daniel Perlin RBC Capital Raises Sector Perform $50.00 $26.00
Mike Burton Goldman Sachs Raises Neutral $20.00 $18.00
David Chiaverini Wedbush Maintains Underperform $20.00 -
James Fotheringham BMO Capital Announces Market Perform $44.00 -

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Affirm Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Affirm Holdings compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Affirm Holdings's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Affirm Holdings's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Affirm Holdings analyst ratings.

About Affirm Holdings

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 majority share of its revenue from the United States.

Breaking Down Affirm Holdings's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Affirm Holdings's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 47.94%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Affirm Holdings's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -28.24%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Affirm Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -6.42%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Affirm Holdings's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.91%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 2.37, Affirm Holdings faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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