Bank of America just raised its EUR/USD forecast
Investing.com - RBC Capital has reiterated its Sector Perform rating on Affirm Holdings Inc. (NASDAQ:AFRM) with a price target of $75.00, placing it within the broader analyst range of $56-$91. According to InvestingPro data, the stock has delivered an impressive 145% return over the past year, though current analysis suggests it may be overvalued.
The firm noted potential challenges for Affirm, including the likely loss of a portion of its Walmart (NYSE:WMT) volume, which represents approximately 5% of total Gross Merchandise Value (GMV). This loss could create a disconnect between fiscal year 2026 GMV guidance and investor expectations. The company has demonstrated strong revenue growth of 42.5% in the last twelve months, with InvestingPro analysis indicating expected profitability this year despite current headwinds.
RBC Capital suggested this potential shortfall might be offset by the timing of United Kingdom (TADAWUL:4280) market launches with key partners such as Shopify (NASDAQ:SHOP). The firm also pointed out that Affirm has consistently exceeded its quarterly GMV guidance, potentially setting high investor expectations for growth exceeding 34% year-over-year for the fourth fiscal quarter of 2025.
The research note highlighted increasing competitive pressures, with Affirm’s main competitor becoming more aggressive in its U.S. growth strategy. This competitive environment could impact merchant acquisition for Affirm going forward.
Despite these challenges, RBC Capital maintained its Sector Perform rating and $75.00 price target on the buy-now-pay-later company’s stock.
In other recent news, Affirm Holdings Inc. is gearing up for its fiscal fourth-quarter earnings report scheduled for August 28. William Blair has reiterated its Outperform rating on Affirm, suggesting investors consider adding the company to their portfolios, anticipating potential upside in gross merchandise volume. Evercore ISI also maintained its Outperform rating with a price target of $67.00, despite adding Affirm to its Tactical Underperform List due to possible near-term challenges. In a strategic move, Affirm and Stripe have expanded their partnership to bring buy now, pay later (BNPL) capabilities to physical retail locations through Stripe Terminal devices, marking the first direct BNPL option on these devices.
Additionally, Affirm is broadening its collaboration with Google (NASDAQ:GOOGL) Pay by integrating its payment options into Chrome’s autofill feature, allowing U.S. consumers to access pay-over-time options directly from their desktop browsers. In Canada, Affirm has partnered with New Look Vision Group to offer flexible payment plans for eyewear purchases at various optical retailers, enabling customers to split payments into biweekly or monthly installments without hidden fees. These developments highlight Affirm’s efforts to expand its payment solutions and partnerships in both the U.S. and Canadian markets.
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