Affirm stock price target raised to $93 by Stephens on strong earnings

Published 29/08/2025, 12:30
Affirm stock price target raised to $93 by Stephens on strong earnings

Investing.com - Stephens has raised its price target on Affirm Holdings Inc. (NASDAQ:AFRM) to $93.00 from $69.00 while maintaining an Equal Weight rating following the company’s fourth-quarter fiscal 2025 results. The stock, currently trading at $79.99, has delivered an impressive 92% return over the past year according to InvestingPro data.

Affirm’s quarterly revenue reached $876 million, representing 33% growth and exceeding Stephens’ estimate of $835 million. The company’s gross merchandise volume (GMV) grew by 43%, surpassing both guidance and the analyst’s expectation of 32% growth.

Revenue less transaction costs (RLTC) totaled $425 million, exceeding Stephens’ estimate of $395 million and showing growth of over 37%. The firm noted that Affirm’s credit performance remains stable, with post-2022 vintages continuing to demonstrate robust performance.

Stephens highlighted that Affirm’s fiscal year 2026 guidance exceeded both sell-side and buy-side expectations on key metrics including GMV, revenues, and margins. The firm specifically mentioned that direct-to-consumer growth is helping to offset the loss of Walmart as a partner. InvestingPro analysis reveals multiple positive indicators for Affirm, with 10+ additional exclusive insights available to subscribers.

Despite the positive results and outlook, Stephens maintained its Equal Weight rating, noting that while the quarterly performance was impressive, the current valuation at over $90 per share suggests investors should not chase the stock at these levels. This aligns with InvestingPro’s Fair Value analysis, which indicates the stock is currently overvalued despite its strong operational performance.

In other recent news, Affirm Holdings Inc. reported stronger-than-expected earnings for the fourth quarter of fiscal year 2025. The company posted earnings per share of $0.20, significantly surpassing the forecast of $0.12. Additionally, Affirm’s revenue reached $876.42 million, exceeding the anticipated $834.35 million. Analysts from TD Cowen have raised their price target for Affirm to $115, citing strong growth and guidance for the first quarter of fiscal 2026. Citizens JMP also increased their price target to $105, highlighting the company’s exceptional Gross Merchandise Volume growth of 43% in the fourth quarter. Despite these strong results, Needham maintained a Hold rating on Affirm, although they raised their estimates for the company. These developments reflect Affirm’s robust performance and strategic innovations in the market.

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