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The Analyst Landscape: 13 Takes On Affirm Holdings

Author: Benzinga Insights | February 12, 2024 11:00am

Affirm Holdings (NASDAQ:AFRM) underwent analysis by 13 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 0 7 4 0
Last 30D 0 0 1 0 0
1M Ago 0 0 3 2 0
2M Ago 1 0 1 1 0
3M Ago 1 0 2 1 0

In the assessment of 12-month price targets, analysts unveil insights for Affirm Holdings, presenting an average target of $31.5, a high estimate of $55.00, and a low estimate of $15.00. Observing a 36.96% increase, the current average has risen from the previous average price target of $23.00.

price target chart

Decoding Analyst Ratings: A Detailed Look

The perception of Affirm Holdings by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
James Fotheringham BMO Capital Raises Market Perform $47.00 $44.00
Reginald Smith JP Morgan Raises Neutral $41.00 $35.00
Vincent Caintic Stephens & Co. Raises Underweight $16.00 $6.00
Daniel Perlin RBC Capital Raises Sector Perform $50.00 $26.00
Mike Burton Goldman Sachs Raises Neutral $20.00 $18.00
David Chiaverini Wedbush Maintains Underperform $20.00 -
James Fotheringham BMO Capital Announces Market Perform $44.00 -
James Faucette Morgan Stanley Raises Underweight $20.00 $15.00
Andrew Jeffrey Truist Securities Raises Buy $55.00 $33.00
John Hecht Jefferies Raises Hold $30.00 $9.50
Timothy Chiodo UBS Raises Neutral $21.50 $19.50
Dan Dolev Mizuho Raises Buy $30.00 $24.00
David Chiaverini Wedbush Maintains Underperform $15.00 -

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Affirm Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Affirm Holdings compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of Affirm Holdings's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Affirm Holdings's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Affirm Holdings analyst ratings.

Discovering Affirm Holdings: A Closer Look

Affirm Holdings Inc offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The firm generates its revenue from merchant networks, and through virtual card networks among others. Geographically, it generates a majority share of its revenue from the United States.

Affirm Holdings's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Affirm Holdings's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 37.31%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Affirm Holdings's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -34.6%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Affirm Holdings's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.74%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Affirm Holdings's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.07%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.21, caution is advised due to increased financial risk.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: AFRM

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