Oil prices extend losses as traders downplay Russia sanction risks
Investing.com - TD Cowen has raised its price target on Affirm Holdings Inc. (NASDAQ:AFRM) to $115.00 from $90.00 while maintaining a Buy rating on the buy-now-pay-later platform. The stock, currently trading at $79.99, has delivered an impressive 92% return over the past year, according to InvestingPro data.
The firm cited Affirm’s first-quarter fiscal 2026 Gross Merchandise Volume (GMV) guidance, which at mid-point is approximately 5% above TD Cowen’s estimate, as growth has remained strong. The analyst noted that Affirm often provides conservative guidance. This aligns with the company’s robust revenue growth of 38.8% and strong financial health metrics. InvestingPro analysis reveals 8+ additional key insights about Affirm’s growth trajectory and market position.
TD Cowen views the quarter as "very positive," driven by strong top-line performance and platform growth. The firm highlighted that Affirm continues to emphasize 0% APR monthly installments to drive merchant value while maintaining Return on Loan Transaction Cost (RLTC) margin above its target range of 3-4%. With a healthy current ratio of 8.25, the company maintains strong liquidity to support its growth initiatives.
The Affirm card remains "a very active area for investment" according to management and should continue driving overall spend growth, particularly in offline transactions. The company is currently conducting "friends and family" testing in the United Kingdom.
TD Cowen believes Affirm’s ability to offer multiple products tailored to merchant needs is and will continue to be a strong differentiator from competitors, with potential expansion into other European countries in the near term.
In other recent news, Affirm Holdings Inc. reported impressive earnings for the fourth quarter of fiscal year 2025. The company achieved earnings per share of $0.20, significantly exceeding the analyst forecast of $0.12. Affirm also reported higher-than-expected revenue of $876.42 million, surpassing the anticipated $834.35 million. The strong performance was attributed to strategic innovations and robust consumer demand. Following these results, Citizens JMP raised its price target for Affirm to $105 from $75, maintaining a Market Outperform rating due to the company’s accelerating Gross Merchandise Volume growth of 43% in the fourth quarter. Meanwhile, Needham maintained its Hold rating on Affirm, although it raised its estimates for the company given the strong results. These developments highlight Affirm’s continued growth and positive reception among analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.