William Blair reiterates Outperform rating on Affirm stock ahead of earnings

Published 20/08/2025, 11:54
William Blair reiterates Outperform rating on Affirm stock ahead of earnings

Investing.com - William Blair has reiterated an Outperform rating on Affirm Holdings Inc. (NASDAQ:AFRM), now valued at $23.8 billion, ahead of the company’s fiscal fourth quarter results scheduled for August 28. According to InvestingPro data, analysts have set price targets ranging from $56 to $90 for the stock, which has delivered an impressive 152% return over the past year.

The investment firm suggests investors should add Affirm to their portfolios before the upcoming earnings report, citing expectations of gross merchandise volume (GMV) upside following strong results from Shopify (NYSE:NASDAQ:SHOP). With revenue growing at 42.5% and a robust current ratio of 13.47, InvestingPro analysis reveals 8 additional key insights available to subscribers, including detailed growth projections and financial health metrics.

William Blair notes that Affirm’s top customers, Shopify and Amazon (NASDAQ:AMZN), are estimated to account for more than 50% of the company’s GMV, which should offset potential pressure from Walmart (NYSE:WMT).

The firm identifies Walmart as a possible two-to-three-point fiscal 2026 GMV headwind for Affirm, but remains confident in the company’s growth trajectory.

William Blair currently forecasts 28% GMV growth for Affirm in fiscal 2026, which exceeds the Street consensus estimate of 25%, and expects the upcoming earnings call to provide insights into what Apple (NASDAQ:AAPL) Pay could mean for Affirm in late fiscal 2026.

In other recent news, Affirm Holdings Inc. has been active with several developments. RBC Capital has increased its price target for Affirm to $75.00 from $70.00, maintaining a Sector Perform rating. This adjustment reflects expectations for Affirm to achieve GAAP operating profitability by fiscal year 2026. Meanwhile, Evercore ISI has reiterated its Outperform rating on Affirm, though it added the stock to its Tactical Underperform List due to potential near-term challenges. On the operational front, Affirm has expanded its partnership with Stripe, introducing buy now, pay later (BNPL) options to physical retail locations via Stripe Terminal devices. Additionally, Affirm has broadened its collaboration with Google (NASDAQ:GOOGL) Pay, enabling its payment options through Chrome’s autofill feature on desktop browsers. In Canada, Affirm has partnered with New Look Vision Group to offer flexible payment plans for eyewear purchases. These recent developments highlight Affirm’s ongoing efforts to expand its payment solutions across various platforms and markets.

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