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Tuesday, Affirm Holdings Inc. (NASDAQ:AFRM), currently trading at $53.74, received continued support from Wells Fargo (NYSE:WFC), with analyst Andrew Bauch reiterating an Overweight rating and a $67.00 price target for the company’s shares. According to InvestingPro data, analyst targets for Affirm range from $53 to $83, with the stock showing significant volatility and a beta of 3.66. Bauch’s outlook on the company remains positive, citing multiple factors that could contribute to sustained and robust revenue less transaction costs (RLTC) with stable credit performance. This optimism is supported by Affirm’s impressive revenue growth of 42.54% over the last twelve months, though InvestingPro analysis indicates the company is not yet profitable.
In his commentary, Bauch highlighted that Affirm has a variety of initiatives ongoing that could drive growth and profitability. He believes that the current trends underlying the company’s business are strong. One of the near-term catalysts Bauch noted could be the de-escalation of tariffs, which may have a favorable impact on Affirm’s performance. Moreover, he anticipates that future earnings surprises could provide additional boosts to the company’s valuation.
Wells Fargo’s analysis includes a range of data points and insights that are expected to be useful for investors and analysts when considering their projections for the remainder of the fiscal year 2025. Bauch’s report suggests that the financial institution sees a solid path forward for Affirm, with strategic actions in place that could lead to continued growth and positive financial outcomes. The company’s strong performance is reflected in its 67.89% return over the past year, though InvestingPro analysis suggests the stock may be overvalued at current levels. Get access to the complete Affirm research report and 8 additional ProTips by subscribing to InvestingPro.
Affirm Holdings Inc. specializes in buy now, pay later services, offering consumers the option to make purchases and pay for them over time. This sector has seen significant growth in recent years, with Affirm being one of the leading players in the market, now commanding a market capitalization of $17.34 billion.
Bauch’s reaffirmed price target of $67.00 indicates Wells Fargo’s confidence in Affirm’s ability to achieve its financial objectives and continue its trajectory of growth. Investors and market watchers will likely monitor the company’s progress closely, particularly in light of the potential catalysts identified by Wells Fargo.
In other recent news, Affirm Holdings Inc. has announced a partnership with World Market to offer flexible payment solutions, allowing customers to pay over time through Affirm’s transparent payment plans. This collaboration aligns with Affirm’s mission to provide consumers with more control and flexibility in their spending, expanding its network of retail partners. In the financial realm, Affirm’s recent third-quarter fiscal year 2025 results showed a robust 36% growth in Gross Merchandise Volume (GMV), although revenue only met expectations, leading to mixed reactions from analysts. BMO Capital Markets raised its price target for Affirm to $64, citing strong execution, while Mizuho (NYSE:MFG) Securities and JPMorgan adjusted their targets to $70 and $69, respectively, maintaining optimistic ratings but reflecting on current market conditions.
JMP Securities also revised its price target to $75, noting the company’s shift towards 0% interest loans, which have lower margins but are popular among consumers and merchants. Despite these adjustments, analysts continue to endorse Affirm with positive ratings, highlighting its GMV growth, stable credit quality, and strategic positioning in the market. Affirm’s forward guidance indicates an increase in GMV and Revenue Less Transaction (JO:NTUJ) Costs for the upcoming quarter, exceeding some expectations. These developments underscore Affirm’s resilience and adaptability in the evolving financial landscape.
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